Trump Weighs Tax Cuts That Could Shake Up Crypto Profits

President Donald Trump is considering tax proposals ahead of November's midterm elections that could reshape how crypto profits are taxed. National Economic Council Director Kevin Hassett said in an interview with Fox Business host Larry Kudlow that Trump wants to offer voters new incentives, including indexing capital gains to inflation.

This means taxes would apply only to gains adjusted for the rising cost of living rather than the full nominal gain. Kudlow, a former Trump economic adviser, said he had recently discussed the idea with the president, who 'liked the idea of the indexing.'

The proposal is relevant to crypto investors because the U.S. Internal Revenue Service (IRS) treats digital assets as property for federal tax purposes. Gains from selling or disposing of crypto are subject to the federal capital-gains framework.