US-based crypto projects like XRP and HBAR will soon enjoy a significant tax break with a 0% capital gains tax. This development could reshape the industry's landscape, giving local companies an upper hand.
Advantage for US Crypto Projects
With a 0% capital gains tax, US-based projects such as XRP and HBAR can reinvest more into growth. This policy might attract more businesses to establish operations within the US.
30% Tax Rate for Non-US Projects
While US projects benefit, foreign crypto firms will face a 30% tax on their capital gains. This could lead many non-US companies to reconsider their global strategies.
More Regulatory Action for DeFi
Senator Ted Cruz is leading an initiative to challenge a recent IRS ruling under the CRA, which requires DeFi brokers to provide transaction reports akin to traditional financial brokers. This could steer important regulatory changes in the industry.
The tax exemption for US crypto projects may strengthen the country's role as a leader in technology investment and lure additional international players to the market.
