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- Dogecoin Foundation appears to challenge the policy rumored to eliminate the capital gains taxes on US-issued cryptos.
- According to reports, a successful implementation of this policy could drive a huge amount of capital into Cardano (ADA), Solana (SOL), and Constellation (DAG).
Reports have established that the new US administration led by President-elect Donald Trump could transform the country into a tax-free crypto haven for assets created by US-based companies. However, the Dogecoin Foundation appears to take a strong exception to its implementation.
The Argument Against This Implementation
Even though the Dogecoin Foundation, which is “a non-profit building open-source projects for Dogecoin” did not directly argue against this system, it shared a critical opinion by a user identified as a junior developer on X. In his submission, “Junior developer” pointed out that ignoring coins backed by non-US-based companies would imply that the administration is deliberately choosing “network winners based on policy and preference.” Per his observation, this could also breed “crony capitalism.”
If the Trump administration is serious about reducing friction in cryptocurrency, they should apply this rule to community-driven, free and open source coins as well:https://t.co/p9igiFHCVE
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1/n— ☣ junior developer ☣ (@chromatic_x) November 19, 2024
If I started a U.S. company to hard fork Dogecoin and the fact there’s a company behind it, it gives tax preference where classic Doge doesn’t get the same treatment. The Trump admin has chosen a network winner based on policy and preference. I reject that idea…And, this is bait, but if you’re railing against the global financial system doing exactly that with central banks, I think you should rail against a government doing it even if you like the government or parts of this policy.
Recently, the vice president of business development at Propy, Tanya Solati, disclosed that the existing tax laws that ensure that capital gains tax is imposed on crypto-to-fiat transactions act as a huge barrier to adoption. Additionally, it makes the daily use of the asset impractical.
Cryptos That Could Benefit From the Elimination of the Capital Gains Taxes
According to reports, this proposed policy is designed to push investors from traditional markets to crypto. In this case, Cardano (ADA), Solana (SOL), and Constellation (DAG) could be the clear winners.
Based on our research, Cardano has strong ties to the American cryptosystem. It also has an interesting focus on smart contracts and scalability, which positions it for further growth. For Solana, its founder, Anatoly Yakovenko, comes from Ukraine but is deeply rooted in the US financial system of operations. The asset was named after Solana Beach in California, and it is headquartered in the Francisco Bay Area. The asset is backed by the likes of Andreessen Horowitz and Polychain Capital.
Constellation (DAG) is also based in San Francisco, and it prides itself as the “American Blockchain.” Currently, it is in strategic collaboration with the Space Force, the US Air Force, and the National Science Foundation to secure critical infrastructure.
According to reports, this policy could trigger a massive capital flow from US investors and institutions into tax-free projects, cause a significant shift from the stock and the metal market, and mark a new crypto era for the US.
As we reported earlier, the Trump administration seeks to make the US the crypto center of the world, establish a Bitcoin strategic reserve, encourage large-scale mining of Bitcoin, and discourage the sale of the huge amount of Bitcoin held by the country.
