It's always painful to watch people get excited about government policies without understanding what it fully entails and how even the most “glorious and for good of the people” looking policies have hidden agendas against said people.
It's rather funny that Crypto X is glorifying this and talking about how bullish and not priced in it is without realizing what it means extensively and how it can be a bridge of what is perceived by many in the Jan 23 executive order.
As far as design allows it, crypto is fundamentally tax free, I don't suppose that a significant number of investors already active in the ecosystem disclose their holdings to government agencies.
Tax, in itself, I'll always say is fraud. That said, what the Trump administration is supposedly going to offer is nothing new, if anything, it's a bait to get people to voluntarily disclose their crypto wealth.
Zero capital gains tax on Made In America
May I just say that this is just a very stupid segmentation. This shows that the government either has zero clue how blockchains work or they are simply playing dumb and hoping to strategically turn every project in this ecosystem into a private business based in the United States.
It makes me sick to the stomach that people are chanting praises for this shit. In case you're not following, when you say a crypto project is “made in America” it sounds like a centralized business.
By actuality, crypto is software and this can be collectively developed by individuals from various parts of the world or from a single country but it changes nothing when it goes live because it becomes maintained by a global network of individual contributors and users.
This design makes it above the ideas of something being made in a particular country. It doesn't matter if the Founder is American, Chinese or Egyptian, it's not a product of a particular country, it takes on its own identity as a self-governing network, that is why we've talked about “network states” in the past.
If crypto projects start identifying as “I'm made in America or Europe” it essentially sets itself up for stiffening regulation as a private and centralized business to which it is not, this is so basic but people seem to only care about government acceptance these days so they can bull-post all day.
This creates a divide
In addition to this being a Trojan to get people to disclose their crypto investments, this is an infiltration that will cause inter-chain divide.
If your investors are enjoying zero capital gains because you're supposedly made in America and everyone else is paying up to 30% tax, what do you think that leads to?
Any form of inter-chain flexibility will likely be met with rigidity through imposed chain-level taxing of those tax-free asset holders to offset the cost of every other project.
This is essentially a means for the government to penetrate the ecosystem and become the third governing body for every project. It is rather funny how people think the government will just let them be and run their tiny billion dollar ecosystems outside the federal control and on top of that, enjoy zero taxation.
The forthcoming regulatory clarity will be many things including mandatory disclosure of all crypto holdings to qualify for tax exemption in qualifying assets and avoidance of tax fraud charges.
On top of this, blockchain governance bodies will be strategically invaded by the government as projects become recognised as private state-level businesses.
The end game is very clear; you'll own and control nothing, and you'll be happy.
Edit: Bitcoin is not considered a US-project so that is getting taxed 30%, haha.
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