Is Trump’s Crypto Tax Plan a Recipe for Disaster? You Won’t Believe What Happens Next! 😱

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So, here we are, folks. January rolls around, and what do we hear? Eric Trump, yes, that Eric Trump, claims that U.S.-based cryptocurrencies are going to be tax-free. Meanwhile, non-U.S. cryptos? A whopping 30% tax! I mean, come on! What is this, a game of Monopoly? 🎲

Now, sure, no capital gains tax on U.S. cryptos sounds like a sweet deal for American investors. But let’s not kid ourselves; there’s always a catch. It’s like finding a hair in your soup—nobody wants that! 🍲

And let’s talk about those red flags. They’re waving like they’re at a parade! 🎉

1. Markets may wobble after confirmation.

If this plan actually gets the green light, brace yourselves! U.S. investors might just dump their non-U.S. cryptos faster than you can say “tax evasion.” And what does that mean? Market turbulence! It’s like a rollercoaster ride, but without the fun. 🎢

And let’s be real, this could have long-term consequences that make your head spin. I mean, who needs stability, right? 🙄

2. Making this change before sound regulations are in place could be harmful.

Oh boy, if they eliminate taxes on crypto investments, we might see a new wave of cryptocurrencies popping up like weeds in your garden. Remember the 2017 ICO boom? Yeah, 80% of those projects went belly up! If the government doesn’t get its act together with regulations, we’re looking at chaos on a grand scale. 🌪️

And let’s not forget the poor retail investors who’ve never touched crypto. They’ll be lured in like moths to a flame, only to get burned by the bad actors. It’s like watching a train wreck in slow motion! 🚂💥

3. Potential harm to the global crypto industry.

Sure, the U.S. has big players like Cardano and Solana, but it’s also a hotbed for scams. The FBI even warned us about fake tokens! It’s like a bad episode of a crime show. 📺

And if U.S. venture firms start playing favorites with local projects, good luck to global startups trying to get funding. It’s like trying to get a table at a fancy restaurant without a reservation. Good luck with that! 🍽️

Even if other countries jump on the zero capital gains tax bandwagon, it could backfire spectacularly. The market would be flooded with tokens, and liquidity? Forget about it! It’s like trying to find a needle in a haystack. 🪡

Conclusion

So, what’s the takeaway here? The U.S. could skew the market, create a breeding ground for scams, and isolate American investors from the global crypto economy. What seems like a tax break now might just end up being the nail in the coffin for competition. It’s a classic case of “be careful what you wish for!” 🪦

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.

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2025-02-28 17:52