Eric Trump confirmed that the US-based cryptocurrencies, including Algorand, Cardano, and Ripple, will benefit from the incoming administration’s crypto tax exemption policy provided they meet the specified conditions. The move is part of a larger plan for the US to become a global leader in the cryptocurrency space.

Eric Trump noted that his father’s administration will seek friendly conditions for cryptocurrency participants. He even called out SEC Chairman Gary Gensler for leading a “holy war” against digital currencies while noting that President Biden and Vice President Harris did nothing to help the sector.

Trump Jr. also called for “sane regulation” of cryptocurrencies, saying his father was committed to making the US the “crypto capital of the world.”

Czech Republic Proposes Crypto Tax Exemption Law

Meanwhile, the Czech Republic introduced legislation to exempt capital gains tax for digital assets held for at least three years, which falls within the European Union’s larger Markets in Crypto-Assets (MiCA) framework. It also waives the obligation of investors to pay capital gains tax for Czech residents on profit made from digital assets kept for no less than three years.

Another aspect of the law requires no reporting for transactions involving digital assets less than 100,000 koruna ($4,200) per year. Prime Minister Petr Fiala has welcomed the bill, saying it is a move toward supporting modern technologies and making life easier for cryptocurrency holders.

The law, however, has received mixed reactions from the general populace. Some critics believe that the three-year holding period may inadvertently encourage speculation rather than the everyday use of cryptocurrencies.

Tax Changes and Fears of Global Inequalities

While the new tax rules of the Czech Republic are a step toward increasing digital asset adoption, they may create disparity in the global crypto tax landscape. This comes amidst similar efforts by other countries to lay down or revise tax frameworks for digital assets.

For instance, Russia recently signed a bill that treats digital assets as property, while South Korea just announced plans to lift its taxation threshold for crypto transactions. Both countries are doing so cautiously, though—in some cases, the laws aren’t finalized yet.

Such divergence of tax policies between countries also brings into question the risk of a tax disadvantage for digital assets domiciled in jurisdictions with higher tax rates. Shayan Salehi, a member of the World Economic Forum, warned that the US crypto tax exemption rule could put the native tokens of non-American-based crypto projects at a big disadvantage, especially if other countries do not follow similar measures.

US Crypto Tax Exemption: International Competition Looms Large

While this proposed exemption for US-based digital currencies could give the sector a fresh boost, the US could face growing competition from nations implementing similar crypto-friendly policies. For instance, the new tax law in the Czech Republic could attract investments by placing the country on crypto investors’ radar as more attractive.

Similarly, Argentina’s financial watchdog has opened access to global digital asset ETFs, signaling that the finance landscape worldwide is rapidly evolving.

These developments suggest that while the US may take the lead in crypto tax exemptions, other nations are making significant strides to attract digital asset investments.

Global Crypto Regulations: A Shift toward Transparency

This latest wave of regulatory changes comes when digital assets draw increasing attention from governments and businesses. For instance, the US is now working on a friendly environment for digital-asset companies by allowing ‘fair-value accounting.’

Therefore, companies can record the Bitcoin at its current market value. A ruling by the US Financial Accounting Standards Board, or FASB, makes it easier and more transparent for companies to report on their cryptocurrency holdings.

This will increase corporate adoption of digital currencies as firms will get a better assessment of the value of their digital assets. With updated tax laws and regulations worldwide, the crypto industry will continue expanding, with countries competing to play the leading role in the global digital economy.