Dogecoin Foundation Challenges Trump’s Crypto Tax Preferences

Dogecoin Foundation Challenges Proposed Crypto Tax Exemption

The Dogecoin Foundation has expressed concerns over a rumored policy proposal that would eliminate capital gains taxes on US-based cryptocurrencies. According to reports, this policy could significantly benefit projects like Cardano (ADA), Solana (SOL), and Constellation (DAG).

Foundation's Argument

While the Dogecoin Foundation did not explicitly oppose the proposed policy, it shared a critical opinion by a junior developer on platform X. The developer argued that excluding non-US-based cryptos would create a situation where the government favors certain "network winners" based on its preferences. This, they suggested, could lead to "crony capitalism."

Benefits for Certain Cryptos

The proposed policy is reportedly intended to attract investors away from traditional markets and into cryptocurrencies. Cardano, Solana, and Constellation are seen as potential beneficiaries due to their strong ties to the US cryptosystem.

Cardano has a focus on smart contracts and scalability, while Solana is backed by major investment firms and has a US-based headquarters. Constellation is headquartered in San Francisco and has strategic partnerships with US government agencies.

Potential Impacts

If implemented, the policy could trigger a massive capital inflow into tax-free US-based crypto projects. It could also lead to a shift away from traditional investments and mark a new era for crypto in the US.

The Trump administration has previously expressed an interest in establishing the US as a global crypto hub. This proposed policy is seen as a step towards that goal.