The Trump Administration's Encryption Policy Direction: A Twisted Path from Regulatory Easing to Tax Reform

Recently, a series of notable actions have taken place in the U.S. political scene regarding cryptocurrency policy. On April 10, 2025, President Trump signed a joint resolution from Congress that repealed the previous requirement for decentralized finance (DeFi) protocols to report transaction information to the IRS. This move is seen as a significant positive development for the cryptocurrency industry.

At the same time, discussions about cryptocurrency taxation policies are becoming increasingly heated. There are reports that certain domestic encryption projects in the United States may be exempt from capital gains tax, while non-U.S. projects may face higher tax rates. This rumor has sparked widespread attention and anticipation in the market.

Looking back at Trump's changing stance on cryptocurrencies, we can see a clear process of transformation. From initial skepticism and criticism to later active participation in NFT projects, and then campaigning on the "crypto card," Trump's attitude towards cryptocurrencies has undergone significant changes. After taking office, the Trump administration demonstrated a supportive attitude towards the encryption industry through a series of measures, such as personnel adjustments and policy introductions.

However, despite the market's high expectations for encryption tax reform, the actual progress has not met expectations. At the White House cryptocurrency summit, Trump did not announce a large-scale tax reform. Even in terms of regulation, some believe Trump's measures are insufficient. The repeal of the DeFi tax reporting rules, while significant, is essentially a passive measure rather than an active tax reduction policy.

The Trump administration faces multiple challenges in advancing encryption tax reform. First, the U.S. Constitution stipulates that the power to tax belongs to Congress, and the president does not have the authority to unilaterally adjust tax rates. Second, political maneuvering between the two parties may result in resistance to any major reforms. Furthermore, the Trump administration currently seems more inclined to support the encryption industry through overall policy rather than directly addressing sensitive tax issues.

Trump once promised to make the United States the world's encryption center, but the reality is complex and ever-changing. Recently, market turmoil caused by tariff policies has nearly wiped out the gains in cryptocurrency since Trump's election. This phenomenon has raised doubts about the effectiveness of Trump's encryption policy.

In the future, the Trump administration will need to seek a balance between fulfilling campaign promises and ensuring the legitimacy of policies when advancing reforms to the encryption tax system. How to promote encryption-friendly policies in a complex political environment while addressing the challenges posed by the global economic situation will be an important test for the Trump administration.