The White House Crypto Summit Will Not Propose Capital Gains Tax Exemptions on Cryptocurrency

BREAKING: No capital gains tax exemptions are expected to be announced at the White House Crypto Summit.
— The Kobeissi Letter (@KobeissiLetter) March 7, 2025

During a virtual summit preview, a White House official stated that taxation would not be an issue for debate, countering previous suggestions. The summit aims to enable industry leaders to provide regulatory feedback, especially in light of Trump’s intention to end Operation Chokepoint 2.0, an initiative targeting banks restricting cryptocurrency firms.

> “The president promised during the campaign to establish a crypto council. He wanted to take advice and feedback from the industry. That is the purpose of the summit,” the official stated. Furthermore, it was mentioned that Bitcoin will receive “special treatment” in the federal government’s accounting system.

Currently, profits from cryptocurrencies in the U.S. are taxed like stock profits. Short-term gains face taxes as high as 37% for assets held for less than a year, while long-term gains are taxed from 0% to 20%, depending on income levels.

This taxation approach is particularly attractive to active crypto traders, especially high-frequency ones. In the absence of a tax break, investors may need to reassess their strategies since this may affect overall profitability.

Internationally, Japan’s Liberal Democratic Party proposed lowering the tax on cryptocurrency profits from the current 55% to 20% in response to economic pressures like increasing government debt and inflation.

Trump’s Strategic Bitcoin Reserve

This tax policy update follows President Donald Trump’s announcement of the U.S. Strategic Bitcoin Reserve, created via an executive order allowing Bitcoin financing through criminal and civil asset forfeiture. White House crypto adviser David Sacks confirmed this on X (formerly Twitter).

The order enables future Bitcoin acquisitions but does not outline a specific plan for immediate purchases. Treasury and Commerce secretaries can explore additional avenues to procure Bitcoin without burdening taxpayers.

The administration distinguishes between the Strategic Bitcoin Reserve and the broader digital asset stockpile, which includes other cryptocurrencies owned by the federal government, promoting responsible management of these digital assets.

The executive order has sparked controversy, with some market participants hoping for a more aggressive strategy for acquiring Bitcoin. Nonetheless, the administration’s stance remains cautious but open to cryptocurrency.