Michaela
White House Crypto Czar David Sacks has rejected crypto tax proposals aimed at building the newly established U.S. Strategic Bitcoin Reserve. The idea has also drawn strong criticism from the crypto community, with many warning that even a minimal transaction tax could slow adoption.
Sacks dismissed the idea of a 0.01% tax on cryptocurrency transactions during a recent interview on the All-In Podcast. Host Jason Calacanis floated the proposal, but Sacks warned that even a minimal tax could pave the way for future increases, placing a growing burden on the crypto industry.
Sacks compared the proposed cryptocurrency transaction tax to the expansion of income tax in the United States “When the income tax started, it only applied to like a thousand Americans, and the legislators swore up and down that it would never be applied to middle-class people,” Sacks stated.
In a post on X, Calacanis addressed critics and appeared to reinforce his stance on the proposal. “We pay taxes on property, hotels, tobacco, booze, gas, & gifts — typically 1-10%,” Calcanis wrote. “I propose a .01 to .10 tax on crypto transactions to legitimize, legalize and grow it. This is worthy of debate,” he added.
Calacanis’ post drew backlash from the crypto community, with one X user comparing the proposed crypto tax to being charged for withdrawing money from a personal bank account. Critics argued that such a policy would undermine an industry that is just beginning to gain momentum under the new administration.
While the recent White House Crypto Summit did not discuss specific tax policies, President Donald Trump’s administration has signaled its support for broader federal tax reform.
The announcement of the Strategic Bitcoin Reserve has triggered notable market movement, causing fluctuations in cryptocurrency prices in response to the news.
Warren Questions Ethics of Trump Administration’s Crypto Policies
After Sacks announced that President Trump had signed an executive order to establish a Strategic Bitcoin Reserve and Digital Asset Stockpile, Senator Elizabeth Warren sent a formal letter to the Crypto Czar. The letter raised ethical concerns about the administration’s approach to crypto regulation.
“I write today to request information about how you, as President Trump’s “Crypto Czar,” have addressed your conflicts of interest, and how you will prevent the President and other private individuals from directly profiting off of the Trump Administration’s efforts to selectively pump the value of certain crypto assets, drop crypto asset-related enforcement actions, and deregulate the crypto asset industry,” Senator Warren wrote.
Furthermore, Senator Warren criticized the administration’s recent moves, warning they could primarily advantage billionaire investors, Trump administration insiders, and speculators at “the expense of middle-class families.”
Read More
- Strategic Bitcoin Reserve Draws Fire: ‘Nothing New,’ Critics Say
- David Sacks Calls US Government’s Sale of Bitcoin a ‘Costly Mistake’
- Crypto Czar David Sacks to Unveil US Digital Asset Policy Plan
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
