Dogecoin Foundation Condemns Trump’s Tax Favoritism for US Crypto Companies
The Dogecoin Foundation is speaking out against potential tax breaks for U.S.-issued cryptocurrencies. A user known as “junior developer” on Twitter raised concerns about the unequal treatment of community-driven cryptocurrencies compared to those created by companies. The user argued that if a U.S. company were to hardfork Dogecoin, it would receive tax benefits that the original community-driven Dogecoin would not. This, according to the user, would create a network winner based on policy and preference.
The pushback from the Dogecoin Foundation is a response to rumors that President-elect Donald Trump could make U.S. cryptocurrencies tax-free. Currently, short-term capital gains on cryptocurrencies held for less than a year are taxed at regular income rates, while long-term gains are taxed at a reduced rate. The Dogecoin Foundation believes that all community-driven, free, and open-source coins should be treated equally under any new tax policy.
Critics argue that the current tax laws on cryptocurrency transactions hinder daily use and broader adoption. The vice president of business development at Propy, Tanya Solati, highlighted that the capital gains tax on every crypto-to-fiat transaction makes using cryptocurrency impractical for everyday transactions. This issue has led to concerns about the impact of potential tax policies favoring U.S. companies in the crypto space.
While there has been no official confirmation of tax changes from the Trump administration, the discussion around potential tax breaks for U.S.-issued cryptocurrencies has raised important questions about fairness and equality within the crypto community. It remains to be seen how these debates will impact the future of cryptocurrency regulation and adoption.
