News

According to The Kobeissi Letter, the White House Crypto Summit will reportedly not propose exemptions from capital gains tax for crypto. This follows a report from a Punchbowl News reporter that broke the news, sending Bitcoin plummeting by around $2,000.

“Since a Punchbowl Reporter broke this news, #Bitcoin is down ~$2,000. It's going to be a busy Friday.” posted The Kobeissi Letter.

The crypto community had long been hoping for this kind of tax break, given the fact that the U.S. government is moving slowly but surely toward clearer regulation of digital assets.

At the moment, cryptocurrency gains in the United States are taxed as stocks.

Short-term capital gains — those on assets held for less than a year — are taxed at rates of up to 37 percent, while long-term gains are taxed at rates of 0 percent to 20 percent, depending on the income bracket of the individual. This tax structure represents an important financial consideration for traders, especially high-volume traders in the engagingly volatile crypto space.

This development follows a major announcement from President Donald Trump regarding the U.S. Strategic Bitcoin Reserve, which has already sent ripples in the market. Reactions in the markets have been mixed.

Although some see this as a move towards making Bitcoin a strategic reserve asset , others, including hedge fund manager — Charles Edwards — condemned this as being lackluster.

Without tax exemptions, investors will likely have to reconsider their plans—particularly those who are looking to cash in big, without the government taking a sizeable chunk. Either way, the crypto industry will be awaiting any final verdict.