Crypto Taxes Under Trump: Key Takeaways

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You can barely find anyone in 2025 who doesn’t know what Bitcoin is yet the one who doesn’t miss buying one or two back in the days. Cryptocurrency and NFTs are quite popular especially among younger people who are more tech-savvy and more open to investing in high-risk assets and playing on platforms like 777 games. But there is one area that many people don’t fully understand and that is crypto taxes. Started under the Biden administration, now during Donald Trump’s presidency, crypto taxes became a hot topic. Let’s try to better understand the crypto taxes under Trump and break down key aspects everyone in the crypto field should be aware of.

Understanding Trump’s Crypto Tax Policy

When Trump became president, cryptocurrency was already growing fast. People in the crypto field started wondering what exactly was Trump’s crypto tax policy during 2017-21 and what’s going to change in 2025? Trump never clearly said if he liked crypto or not (unless a post in X can be considered as the answer). Sometimes he said he didn’t trust cryptocurrencies, and other times his administration actually made rules that made it easier for banks to handle them. Controversial, isn’t it?

Okay, so what was the main thing Trump did about crypto taxes, you may ask? Basically, he made the IRS monitor crypto transactions much more closely compared to how it was before his administration with lots of DEX and CEX didn’t even ask for KYC or have their AML policies updated. Under Trump, the IRS started to treat cryptocurrencies like Bitcoin and Ethereum as “property” instead of regular money. What does that mean? Well, it means when you sell crypto, trade it for something else, or buy goods with it, you might have to pay taxes. And if you don’t pay your taxes, you know what will happen sooner or later.

How Trump’s Policies Changed Crypto Taxes

One big takeaway from crypto taxes under Trump was that the IRS got tougher. Before Trump, many people who made money on crypto didn’t think too much about taxes. It was okay to swap some USDT to USD on Coinbase or even buy a car with crypto, nobody was after you! But under Trump, the government made sure to remind people that crypto profits need to be reported.

For instance, the IRS started asking directly on tax forms: “Did you sell, send, or trade any cryptocurrency?” This scared a lot of investors because they realized the government was serious about crypto taxes and sooner or later will track and fine all unreported transactions. Analysts predict that crypto will be one of the things Trump will use to decrease the national debt.

Another thing Trump’s policies did was require crypto exchanges like Coinbase to give the IRS details about big transactions. So, if you sold or traded a lot (like really a lot) of crypto, the IRS would probably know about it and that it was you. This move made it much harder to hide crypto profits for many if not most of american crypto investors.

Did Trump’s Policies Help or Hurt Crypto Investors?

When thinking about crypto taxes under Trump, each investor answers to himself on whether they are for good or bad. But aside from personal opinion, did his policies help or hurt crypto investors? The answer again depends on who you ask.

On one hand, some investors didn’t like Trump’s approach because they had to pay more attention to tax rules and share their profits with the IRS. Before Trump you could just ignore crypto taxes and buy whatever you want with Bitcoin or stablecoins.

On the other hand, some experts think Trump’s tax policies were actually good because they forced crypto investors to get serious about keeping transaction records and contributing to local budgets.

But younger investors, especially those who traded small amounts, felt frustrated. They found the tax rules confusing and difficult to follow. Well, there’s a bunch of crypto tax services on the market, but who would use them if you only buy coins worth a hundred dollars?

Trump vs. Biden: What’s Different Now?

Comparing Trump’s crypto tax policies with President Biden’s approach helps us understand the bigger picture. Under Trump (2017-2021), the focus was on making people aware they needed to report crypto earnings. Biden’s administration (2021-2024) was pushing even harder to make sure crypto investors pay every dollar of taxes owed. Both administrations worked quite the same to squeeze every dollar from what investors made on their coins.

Biden had clearer rules about how crypto should be taxed. He wanted CEXs to report all crypto transactions over $10,000 directly to the IRS. This move goes further than Trump’s rules, showing Biden’s administration was even stricter about crypto transparency. While Trump’s crypto tax policies might’ve seemed a bit tough, Biden’s were even tougher. Now, under the new Trump administration in early 2025 there were no dramatic changes in the crypto taxations.

Tips for Handling Crypto Taxes Today

If you started investing in crypto in 2025 you need to know how to handle your taxes correctly. Here are some easy tips to stay out of trouble and keep your taxes simple:

• Keep Records of Everything – Always record how much you bought crypto for and what you sold it for.
• Report all transactions even If you traded a small portion of Bitcoin for Ethereum or spent crypto on goods. The IRS considers it a sale, and you might owe taxes you even don’t know of.
• Use tax apps designed to help with crypto taxes. You can connect them directly to your exchange accounts and track everything automatically.
• Don’t ignore crypto on your taxes because the IRS now has ways to find out about transactions and penalize you.
• Ask for help if needed or consider hiring a crypto tax consultant.

So Are Trump’s Crypto Taxes Good or Bad?

Crypto taxes under Biden were a mixed bag. Biden made crypto investors pay more attention to taxes, but will be more likely to make the US a new crypto capital of the world. And when (if?) this happens, be prepared for a different crypto taxation scheme because Trump needs money to decrease the US debt.