After a nail-biting victory in the 2024 presidential election, US President Donald Trump is tirelessly working to make the U.S. the crypto capital of the world. In less than a year of Trump’s presidency, crypto HODLers are seeing some serious green in recent months with a historic bullish cycle. While this market pump is mainly fueled by a combination of various factors, many experts affirm that Trump’s pro-crypto administration and development of friendly cryptocurrency regulation are the main factors behind this rally.
From the approval of the GENIUS Act for USD-pegged stablecoins to impressive progress in the CLARITY Act, everything has been pushing the crypto market like never before. Additionally, federal agencies like the SEC and CFTC are taking a huge U-turn from their hostile stance against crypto innovations, which the world had witnessed under the Gary Gensler-led SEC. These green signals are boosting investors’ confidence in the crypto market.
According to the CoinLedger report, around 562 million people are holding cryptocurrency worldwide, which is approximately 6.8% of the world population. The National Cryptocurrency Association (NCA) report suggests that 55 million U.S. adults are using crypto, and this number is rapidly growing.
Trump’s Stance on Cryptocurrency and Financial Regulations
Once a crypto-skeptic, now the biggest supporter of cryptocurrency, the US president has changed his views on crypto innovations during his election campaign. While it is still secret what made him believe in digital assets, since 2024, he has not missed a single chance to tease crypto enthusiasts.
During his first term in 2019, US President Donald Trump shared a post on X(formerly Twitter), saying, “I am not a fan of Bitcoin and other Cryptocurrencies.”
Surprisingly, Donald Trump’s stance on Bitcoin and other cryptocurrencies has undergone a complete 18–degree turn, transitioning from skepticism in the early stages to becoming one of the most vocal advocates for crypto and decentralized finance. In his presidential speech, he added, “I will ensure that the future of crypto and bitcoin will be made in the USA, not driven overseas. I will support the right to self-custody for the nation’s 50 million crypto holders.”
During his election campaign, he also made a solid promise, saying that “If I am elected, it will be the policy of my administration, United States of America, to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future.”
While not completely, though, he already completed this promise after he signed an executive order to establish a Strategic Bitcoin Reserve with bitcoin owned by the Department of the Treasury that was seized as part of criminal or civil asset forfeiture proceedings.
Trump’s Presidency and the Key Amendments in U.S. Crypto Tax Rules
In April 2025, Trump signed a bill to end an IRS rule that overstretched the definition of a “broker” to include decentralized crypto exchanges. This will provide relief to crypto holders in tax reporting on DEX.
Last year, the IRS introduced new rules to catch crypto users not paying taxes. These rules came from the 2021 Infrastructure Investment and Jobs Act, a $1 trillion bipartisan law. The rules require crypto brokers to send tax forms to both the IRS and crypto holders to help with tax filing.
During his second term, Donald Trump’s administration has laid down an impressive regulatory framework. His administration has submitted a comprehensive 166-page report, and the White House has delivered a detailed policy roadmap to include the mainstream of the U.S. financial and tax systems.
This document is the first step toward the President’s promise of making the United States the “crypto capital of the planet.”
In this legislative effort, Trump’s administration moved the discussion around crypto regulation beyond vague promises as it offers legislative and regulatory guidance. It touches every aspect of the cryptocurrency market, from how investors pay taxes to a clear picture to register their operations.
What are the Key Tax Proposals
The main highlight of this report is to change how the government taxes cryptocurrency. Current tax rules for digital assets have numerous loopholes, and this report aims to fix problems in the current rules in order to end the long-standing dilemma.
The report asks Congress to introduce a new category for cryptocurrency. Right now, the tax agency treats crypto like it is property, similar to a house or a car. IRS treats digital currency as property for federal tax purposes. This makes doing your taxes complicated, even for small things like buying a coffee with Bitcoin. A new category would mean tax rules that actually make sense for how cryptocurrency works.
Furthermore, there is another major update for many traders, which is about “wash sales.” In the stock market, you can not sell a stock for a loss, get a tax break for that loss, and then immediately buy the same stock back. But in crypto, you can. This allows people to play the system to lower their taxes without really losing their investment. The new rule would stop this practice.
The same report also directs the Treasury Department to answer some really important questions that confuse everyone, including
- How do you decide the value of a cryptocurrency when it is being traded on numerous exchanges at different prices at the exact same time?
- How do you know the exact moment you made a profit or lost money on a complex trade?
Also, the report states that the government needs to explain to big companies to explain how their crypto affects the special corporate tax they have to pay.
The report also directs individuals to disclose their crypto holdings in foreign accounts.
Apart from this report, the U.S. government is also working on a comprehensive regulatory framework by coordinating with SEC and CFTC appointees, which could simplify tax compliance for crypto users.
Furthermore, the Labor Department repealed Biden-era guidance, which cautions against crypto in 401(K) plans. It would possibly allow tax-advantaged retirement accounts to include digital assets. This could be a moon-worthy approach for long-term investors who love to diversify their portfolios.
Conclusion
It is obvious that transparent crypto tax legislations, crypto security best practices and regulations are wonderful foundations for a trading community that people will trust when you examine Trump´s cryptocurrency policies. Although deregulation can help promote growth in the market, strict security procedures and compliance processes should go hand in hand with regulations forming the foundation for the growth of a sustainable industry.
Here, the policy change can help to place the U.S. at the forefront of the cryptocurrency industry, however, it must be balanced with standard accepted security procedures and regulations that protect investors and prevent market manipulation. The proposed crypto advisory council could provide the foundation for these standards, while encouraging propriety in the global digital asset markets.
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