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    US crypto projects may be exempt from capital gains tax in the future.

    Eric Trump claims to confirm US-based crypto projects will benefit from zero capital

    There was some big news this week for US-based crypto projects. Eric Trump claims that US-based projects like XRP and HBAR will eventually benefit from a zero capital gains tax, while non-US-based projects face a ~30% tax. Furthermore, Sen. Ted Cruz plans to use the Congressional Review Act to challenge a controversial IRS rule requiring DeFi brokers to report consumer data. Critics, including Cruz, argue the rule stifles innovation and violates privacy. With growing support, Cruz's efforts could lead to changes in cryptocurrency regulations in favor of innovation and decentralization.

    Will bullish news this week about crypto and crypto taxes in the US!

    I have Scott Martin, my personal crypto tax CPA, here with me again to explain one of the big news items.

    First, Eric Trump claims that some top US-based crypto projects, like XRP and HBAR, will soon benefit from zero capital gains tax, while non-US-based projects will face ~30% capital gains tax , Coingecko added a special category to track US-based crypto projects, check.

    Also, Sen. Ted Cruz plans to introduce a Congressional Review Act resolution next week to repeal a controversial IRS rule requiring some DeFi brokers to report gross receipts and provide consumer data, including names and addresses. The IRS rule, finalized in December, stipulates that DeFi brokers file a Form 1099 similar to traditional securities brokers. Critics, including Cruz, argue that the rule stifles innovation, compromises privacy and complicates tax reporting for the decentralized nature of the crypto industry.

    Cruz, a crypto proponent, believes the regulation targets the DeFi sector, which he considers essential to innovation in the US crypto space. He also stands against CBDCs, advocating decentralized alternatives like bitcoin,

    The IRS rule broadly defines "brokers," including nonforfeiture organizations that have access to consumer information even if they do not directly own assets. This creates significant enforcement challenges, particularly within DeFi, where platforms often do not have centralized entities to collect and report data. The Congressional Review Act allows Congress to repeal regulations within 60 days of promulgation. With the current Republican-dominated Congress, Cruz's resolution is expected to gain traction, further cementing his position as a pro-crypto lawmaker.

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