Eric Trump Says Crypto Projects to Enjoy Zero Capital Gains Tax

Eric Trump , businessman and son of the U.S. President, has reportedly confirmed that some crypto projects like HBAR and XRP will have tax incentives. Notably, these will have zero capital gains tax, while others not based in the U.S. must pay approximately 30% capital gain tax.

Encouraging Crypto Innovation Through Tax Incentives

This claim suggests that these projects in the U.S. will not pay capital gain tax, which serves as an incentive for investors in the industry. This could encourage investment in these U.S.-linked crypto projects.

Analysts say, if true, this might indicate the new policy direction of the new administration to encourage U.S.-based blockchain innovation.  Such a policy could influence investment decisions as more investors shift towards these “zero capital gains tax” entities to the disadvantage of foreign-origin cryptos.

Ted Cruz Targets IRS Rule and Centralized Crypto Policies

Meanwhile, a report states that Senator Ted Cruz would introduce a Congressional Review Act resolution to overturn an existing IRS rule on crypto tax. The IRS rule requires DeFI brokers to provide user data, including their names and addresses, and report gross proceeds.

Many who oppose the IRS rule, including Cruz, maintain that it compromises user privacy, hinders innovation, and complicates tax reporting. This is particularly due to the decentralized nature of the crypto space.

The Texas lawmaker, a crypto enthusiast, argues that the rule specifically targets the DeFi sector. Cruz has also been vocal against the Central Bank of Digital Currency (CBDC), preferring decentralized alternatives such as Bitcoin.

Political commentators believe Cruz’s move could gain support given that Republicans dominate Congress. Additionally, the submission is within 60 days, as stipulated in the guidelines that allow for an overturn of a regulation.

Ripple Case and SEC Leadership

Crypto analysts consider this a sign of a favorable move for the industry. Given the pro-crypto stance of the President Donald Trump-led administration, the crypto sector may see policies that allow it to thrive and innovate.

Many stakeholders look forward to a notable case between the Securities and Exchange Commission (SEC) and Ripple . Although the SEC recently filed another lawsuit on an earlier ruling, many hope for a more crypto-friendly regulation with the new SEC chair, Paul Atkins .