May 13, 2025 – Washington, D.C. — A renewed push to eliminate taxes on cryptocurrency transactions is gaining momentum as former President Donald Trump, along with 14 Republican members of Congress, publicly voiced support for sweeping changes to federal crypto taxation policy.
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The proposal, which surfaced following a roundtable discussion hosted by pro-crypto advocacy groups, calls for eliminating capital gains taxes on most crypto transactions — a move its supporters argue would stimulate innovation, job creation, and financial independence in the United States. Trump’s endorsement comes amid speculation that cryptocurrency could be a major issue in the 2024 and 2026 election cycles.
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A Growing Congressional Coalition
The group of 14 GOP congressmen, led by Reps. Tom Emmer (MN), Warren Davidson (OH), and Byron Donalds (FL), are backing draft legislation aimed at exempting personal crypto transactions under a certain threshold (rumored to be $200 or $600) and potentially even larger investment-related gains under new asset class distinctions.
Rep. Davidson stated, “Crypto is not just an investment class—it’s a freedom technology. We believe that excessive taxation is stifling its growth in America.”
Trump’s Position and Political Calculus
Trump, who once called Bitcoin a “scam” during his presidency, has shifted his rhetoric in recent years as digital assets have become more mainstream. At a closed-door policy summit in Florida last week, he reportedly told donors and tech leaders that “America needs to lead in crypto, not tax it out of existence.”
The pivot appears to align with his broader platform of deregulation and economic populism. Analysts suggest Trump’s support may be aimed at courting younger, crypto-native voters and donors in anticipation of a political comeback.
Economic and Regulatory Implications
Critics, however, warn that removing taxes on crypto gains could open the door to large-scale tax avoidance and financial opacity. “We’re not against innovation,” said a senior Treasury official, “but removing guardrails without replacement frameworks could lead to regulatory chaos.”
The IRS currently treats cryptocurrencies as property, meaning each transaction — even buying a coffee — is technically a taxable event. Industry groups like Coin Center and the Blockchain Association argue that this system is outdated and unenforceable at scale.
The Road Ahead
While the proposed bill has not yet been formally introduced, sources indicate it may appear in the House within the next two months. If passed, it could dramatically reshape the American crypto landscape and set a global precedent.
Still, it faces steep opposition in the Senate, particularly from lawmakers concerned about tax equity, money laundering, and budget shortfalls.
Senator Lummis Proposes Strategic Bitcoin Reserve
In a related development, Senator Cynthia Lummis (R-WY) has introduced the BITCOIN Act, proposing that the U.S. government acquire up to 1 million bitcoins over five years to establish a Strategic Bitcoin Reserve. This initiative aims to position Bitcoin as a national reserve asset, akin to gold, and to bolster America’s financial resilience. The reserve would be managed by the Treasury Department, with acquisitions funded through existing federal resources, including seized assets.
The BITCOIN Act has garnered support from several Republican senators and representatives, reflecting a growing legislative interest in integrating digital assets into national financial strategies. While proponents argue that such a reserve could enhance economic stability and affirm the U.S.’s leadership in digital finance, critics caution against the volatility of cryptocurrencies and the potential risks to monetary sovereignty.
As crypto adoption continues to climb and governments worldwide refine their approaches, the outcome of these legislative efforts could become a defining moment for U.S. digital asset policy — with significant implications for investors, startups, and the broader financial system.
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