In just 48 hours, TRUMP, the official memecoin of U.S. President-elect Donald Trump, has taken the cryptocurrency world by storm, reaching a fully diluted value (FDV) of $71 billion. This surge has propelled TRUMP to become the 15th-largest cryptocurrency by market cap, surpassing established meme coins like Pepe (PEPE), Shiba Inu (SHIB), and Dogecoin (DOGE).
As the TRUMP token gains momentum, rumors are swirling about potential crypto tax reforms, with speculation suggesting that the coin’s rapid rise could influence changes in U.S. tax policy. Currently, cryptocurrencies in the U.S. are taxed as property, with capital gains tax applied on any sale, trade, or disposal. Short-term capital gains (for assets held under a year) are taxed at rates ranging from 10% to 37%, while long-term gains (for assets held over a year) are taxed at 0% to 20% depending on income.
The success of TRUMP has sparked discussions about the possibility of eliminating or reducing taxes on crypto capital gains. Crypto investor Mike Alfred even suggested that with Trump’s wealth now largely tied to crypto, there could be a push to end federal taxes on crypto sales in the near future.
As TRUMP continues to rise in the ranks of the crypto world, the future of tax reform remains a hot topic, with many speculating that this trend could change the landscape of crypto taxation forever.