TRUMP Token Shakes Up the Crypto World and Sparks Tax Reform Buzz

Launched days ahead of Donald Trump's inauguration, TRUMP memecoin has zoomed to emerge as the world's 15th largest cryptocurrency within under 48 hours in value, going past $71 billion. Its overnight boom has invited rumors of possible changes in crypto taxes in the United States.

Source: Gammichan

Why TRUMP Memecoin’s Rise Matters!

The TRUMP token’s explosive growth has flipped major players like Dogecoin and Shiba Inu, capturing the attention of traders and investors. Over 80% of the token supply is held by Trump-affiliated entities, fueling rumors of changes in US crypto tax policies.

Taxation of Cryptocurrency and Expectations for Changes in Regulation

Cryptocurrencies are taxed by the United States as properties and their rates vary for short-term gains from 10-37%, whereas the rates of long-term gains above one year will be ranging between 0-20% as a percentage of income. Such taxes are really felt by crypto investors.

Trump’s involvement in crypto has fueled speculation about policy changes. Investors like Mike Alfred suggest Trump’s stake in crypto might push for eliminating federal taxes on crypto sales. Caitlin Long, CEO of Custodia Bank, believes his ventures could lead to favorable tax policies, such as reducing capital gains taxes or simplifying reporting processes.

TRUMP Token’s Market Impact

The TRUMP token’s rise has diverted liquidity from other altcoins like Dogecoin and Shiba Inu, disrupting the broader crypto market. Its supply structure—with 80% locked in a three-year schedule—adds stability and prevents immediate sell-offs.

While tax reform speculation remains unconfirmed, the TRUMP token highlights the growing intersection of cryptocurrency and politics. If reforms do materialize, they could significantly boost crypto adoption in the US. The token’s rise is a milestone in crypto’s influence on mainstream politics and economics. Keep watching as this story develops.