In a sensational statement, White House press secretary Karoline Claire Leavitt disclosed that US President Donald Trump did signal his support for tax exemption for Bitcoin and other cryptocurrency transactions.
(Source: Watcher.Guru on X)
Crypto Community Reacts to Tax Exemption Statement
Karoline Claire added that if authorities continue to support the President’s stance, they are receptive to making cryptocurrency payments easier and more efficient for those using it to buy coffee.
Her statement split the crypto community into two: those supporting minimal taxation with regulatory oversight and those opposing it entirely.
While the definition of “small” crypto transaction is still not clear, some X users became anxious on social media platforms like X.
On the flip side, some users are calling a win big to the White House’s statement on crypto tax exemption.
“The future’s looking bright for Bitcoin! This de minimis tax exemption could be a game-changer, making everyday crypto transactions as seamless as grabbing your morning coffee. With ‘Crypto Week’ in full swing and the GENIUS Act on the horizon, it’s clear the U.S. is gearing up to lead the charge in the crypto revolution. Let’s keep the momentum going!” a user on X writes.
Currently, the US Internal Revenue Service treats cryptocurrency as property, meaning all transactions are subject to capital gains or income tax. Short-term gains (assets held under 1 year) are taxed at 10%-37%, while long-term gains (held over 1 year) face lower rates of 0%, 15%, or 20%.
As the advisory says that April 15 for most filers, brokers must report user transactions to the IRS using Form 1099-DA. While investors can currently choose cost-basis methods, like FIFO or specific identification, FIFO will become mandatory in 2026.
This statement comes amid the ongoing ‘Crypto Week’ in the US House, where lawmakers and representatives are discussing three crucial regulatory frameworks for digital assets, including the GENIUS Act, the CLARITY Act, and the Anti-CBDC Surveillance State Act.
The US House just moved forward with two major crypto bills, including the CLARITY Act and GENIUS Act, after a record-long debate and vote. The CLARITY Act sets rules for cryptocurrencies, while the GENIUS Act focuses on USD-pegged stablecoins. Both bills faced heated arguments and last-minute changes, but are now one step closer to becoming law.
Rep. Scott Fitzgerald highlights the need for a regulatory framework, saying, “For too long, innovators have been stuck in a regulatory gray zone caught between agencies and overlapping authority and subject to enforcement instead of clear rules. The uncertainty has driven jobs, investment, and innovation offshore, while leaving American consumers exposed. The CLARITY Act fixes this.”
Also Read: US House of Representatives Discusses the CLARITY Act
