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White House crypto and AI czar David Sacks has dismissed a proposed tax on cryptocurrency transactions, rejecting the idea as a potential method to fund a U.S. strategic Bitcoin reserve. He responded after All In Podcast host Jason Calacanis suggested a 0.01% tax on each crypto transaction charged in the asset being transferred, bought, or sold.
Sacks pushed back against the idea, warning that such measures often start small but expand over time. He cited historical tax policies, noting that the U.S. income tax initially applied to a limited number of citizens before gradually affecting the broader population. He described the proposal as burdensome and expressed skepticism over new taxes, even when introduced as minimal.
Most cryptocurrency community members reject this proposed tax law because it imposes requirements on wallet transfers made by one person to their own wallets. A tax regulation would create additional rules that investors and businesses must manage.
Trump Administration’s Approach to Tax Reforms
During the White House Crypto Summit, members avoided discussing specific tax policies, which left a cloud of doubt regarding crypto tax approaches from the current administration. During his presidency, Donald Trump supported extensive tax revisions to transform how federal authorities collect funds.
In past proposals, Trump advocated for removing federal income tax and recommended importing goods with tariffs instead. According to Trump’s viewpoint, the U.S. government survived through tariffs in the nineteenth century; therefore, he advocated reintroducing a similar funding method. Commerce Secretary Howard Lutnick declared that the External Revenue Service will replace the IRS.
Research conducted by Dancing Numbers shows that Trump’s personal tax plan enables Americans to accumulate lifetime savings of at least $134,809 for each taxpayer. The company calculated that people would gain a total of $325,561 when state income taxes eliminated on top of the proposed savings estimates of $134,809 each.
Although these proposals have gained attention, no official declarations about implementing these tax policies have emerged from the administration. Digital asset market investors and participants observe regulatory moves affecting cryptocurrency market performance and financial investment tactics.
Also Read: Ripple Pledges $50 Million to Support National Cryptocurrency Association
