In a world where digital assets are quickly becoming a cornerstone of global finance, the United States is at a crossroads. The Trump administration has repeatedly emphasized its commitment to making ordinary Americans more prosperous. From promising to restore economic strength on the campaign trail to appointing progressive advisers, the White House appears poised to usher in a new era of financial freedom. But if President Trump really wants to boost wealth creation for the average citizen – and establish the US as a leading position in the worldBitcoin superpower” – his government must embrace a bold, transformative policy: abolish the capital gains tax on Bitcoin.
The Winds of Change: lessons from abroad
The Czech Republic recently made headlines when its parliament voted overwhelmingly to exempt capital gains from Bitcoin and other crypto asset sales from personal income tax, provided they are held for more than three years and meet certain income thresholds. This is not an isolated event. Countries such as Switzerland, Singapore, the United Arab Emirates, El Salvador, Hong Kong and parts of the Caribbean have long recognized that zero or minimal capital gains taxes on Bitcoin could boost adoption, financial innovation and consumer confidence.
As John F. Kennedy famously said: “A rising tide lifts all boats.“If we apply that logic to economic growth via Bitcoin, the tide is global – and rising fast. In a sea awash with global liquidity and debt, the American economic ship must navigate these digital currents. The policy choices of these countries – and the increasing prosperity of their citizens – send a strong message: the US can and should use Bitcoin as a tool for growth, and not burden the country with outdated tax models.
Trump’s own words: a path to prosperity
President Trump himself has indicated that he is willing to reconsider the Bitcoin tax. “They make them pay taxes on cryptocurrencies, and I don’t think that’s right.he said in a recent interview, echoing the frustrations of millions of Americans who find it absurd to pay capital gains taxes after using Bitcoin to buy something as small as a cup of coffee. “Bitcoin is money, and you have to pay capital gains tax if you buy coffee with it?he asked rhetorically, highlighting how current laws discourage everyday transactions. He added: “Perhaps we should abolish taxes on crypto and replace them with tariffs.”
This sentiment is not just rhetorical flourish. Trump, who spoke at the Bitcoin 2024 Conference in Nashvilleproclaimed his vision that America would be the world’sBitcoin superpower.“He also promised”Create Bitcoin in America,‘ making the US a leading center of Bitcoin innovation. Additionally, on December 5, he appointed former PayPal Chief Operating Officer David Sacks as his “White House AI & Crypto Czar” – a move widely seen as a step toward implementing forward-looking crypto policies.
The Bitcoin Act of 2024: A Strategic Reserve for the People
The US has already taken monumental steps in this direction. The Bitcoin Act of 2024 authorizes all Bitcoin held by a federal agency to be transferred to the Treasury to be held in a strategic Bitcoin reserve. For five years, the Treasury Department must purchase one million Bitcoins and hold them in custody for the United States. This accumulation at the government level shows a long-term vision for incorporating Bitcoin into the national financial strategy. But why stop there? Eliminating the capital gains tax on Bitcoin would create a positive feedback loop between national policy and personal prosperity. While the federal government invests and owns Bitcoin, private citizens can do the same without facing tax liabilities.
Serving the Everyday American
For ordinary Americans, the cost of living and soaring inflation have been the focal points of President Trump’s re-election campaign. Traditional strategies – interest rate manipulation, quantitative easing – often amount to rearranging deck chairs on a sinking ship when faced with truly systemic economic challenges. Bitcoin offers a life raft – say, a digital Noah’s Ark – for Americans trying to preserve and grow their wealth against the erosive forces of inflation. Eliminating the capital gains tax on Bitcoin would allow citizens to transact, invest and save in a stable, finite asset without incurring federal taxes on each incremental gain.
The ripple effect here is clear: more people adopting Bitcoin as a store of value and medium of exchange means stronger demand, which could further support the U.S. Treasury’s strategic assets. It’s a virtuous cycle, a positive feedback loop. As Bitcoin’s value grows, so does the country’s wealth base – paying off the national debt, strengthening the dollar’s hegemony in global trade, and actually making Americans wealthier and more secure.
Why America Needs Bitcoin
Bitcoin is no longer a niche experiment reserved for a small group of enthusiasts. It has become a mainstream, urgent priority for everyday Americans – especially for the rising generation that will shape our country’s future economy. This is not an ideological plea; it is a practical, data-based reality. According to the Stand with the Crypto Alliancea nonprofit organization committed to transparent blockchain policy, more than 52 million Americans now own some form of cryptocurrency. Nearly nine in 10 Americans believe the financial system needs updating, and 45% say they would not support candidates who stand in the way of crypto innovation. These numbers represent a huge, cross-party groundswell: Stand With Crypto’s survey shows that 18% of Republicans, 22% of Democrats, and 22% of Independents own crypto. This breaks the usual tribal politics and points to a fundamental truth: Bitcoin is now a national policy talking point, not a side note on a fringe agenda.
The demand that America take the lead is clear. 53% of Americans want crypto companies to be based in the US so that technological innovation and the wealth it generates stays on home soil. Among Fortune 500 executives, 73% prefer US-based partners for their crypto and Web3 initiatives, reflecting the business community’s desire to keep America at the forefront of global financial progress.
If you don’t act now, you risk repeating past mistakes. America once led the world in advanced manufacturing, but today 92% of the most advanced semiconductor manufacturing takes place in Taiwan and South Korea. We cannot afford to cede the future financial landscape to other regions. Bitcoin is not just an asset class; it is the digital backbone of a rapidly evolving monetary system. If the US wants to maintain its economic hegemony, maintain leadership in innovation, and ensure that everyday Americans have access to a stable, growth-oriented financial future, it must wholeheartedly embrace Bitcoin. By doing so, the country can secure its place as a global Bitcoin superpower – uplifting our citizens, strengthening our economic base, and securing our strategic interests in the 21st century digital economy.
America, chart the course
By aligning with global best practices and pursuing progressive policies, the US can position itself as a beacon of financial freedom and tech innovation. Eliminating the capital gains tax on Bitcoin would signal to investors, entrepreneurs, and ordinary citizens that America is serious about leading the 21st century digital economy. It’s not just about being “Bitcoin friendly”; it’s about ensuring that the average American has the tools they need to navigate turbulent economic waters.
The complexity and inefficiency of taxing every digital transaction places an unnecessary burden on innovation and everyday life. Americans deserve better – they deserve the freedom to transact in a digital world without punitive surveillance.
At its core, this is America’s chance to do what it has always done best: innovate, adapt and lead. Eliminating the capital gains tax on Bitcoin wouldn’t just fulfill a campaign promise; it would pave the way for long-term prosperity, empower citizens to secure their financial future, and cement the United States as the world’s leading Bitcoin champion. A rising tide indeed lifts all boats – and what better ship to board than a Bitcoin Ark, led by a visionary administration determined to truly make America great again?
This article is a To take. The opinions expressed are solely those of the author and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.