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Ruholamin Haqshanas
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Ruholamin Haqshanas
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David Sacks, the White House’s lead on crypto and AI policy, has pushed back against the idea of taxing cryptocurrency transactions to build the U.S. strategic Bitcoin reserve.
During a recent appearance on the All In podcast, host Jason Calacanis suggested a 0.01% tax on every crypto transaction, with the levy applied in the asset being transferred, bought, or sold.
Sacks Warns Crypto Tax Could Expand Beyond Initial Proposal
Sacks was quick to reject the proposal, warning that such taxes often start small but expand over time.
“That’s always how taxes start. They are described as being very modest,” Sacks said.
“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.”
Expressing his concerns, Sacks added, “I don’t particularly like the idea of new taxes, even if it is promised that they won’t affect people very much. That sounds burdensome to me.”
Crypto investors also reacted negatively to the idea, arguing that even minor transaction fees could stifle adoption.
Critics pointed out that such a tax would apply even to transfers between wallets owned by the same person, making routine transactions more expensive.
The recent White House Crypto Summit did not introduce any official tax policies, but the Trump administration has hinted at broader tax reforms.
President Donald Trump has previously proposed eliminating the federal income tax and replacing it with tariffs on imported goods.
He has argued that tariffs once fully funded the U.S. government in the 19th century, a period he described as an era of significant prosperity.
Commerce Secretary Howard Lutnick has echoed this idea, suggesting that the Internal Revenue Service (IRS) could be replaced by an “External Revenue Service.”
According to research from accounting automation firm Dancing Numbers, eliminating the federal income tax could save the average American taxpayer at least $134,809 over their lifetime, with potential savings reaching $325,561 if state income taxes were also repealed.
Sen. Warren Questions Crypto Czar Sacks on Crypto Ethics
As reported, Sen. Elizabeth Warren (D-Mass.) has raised ethical concerns regarding the administration’s approach to cryptocurrency regulation as the White House held its first Digital Assets Summit.
In a letter addressed to David Sacks, Warren questioned potential conflicts of interest and the ethical implications of the government’s involvement in the blockchain industry.
In the letter, she voiced concern regarding transparency and accountability in digital asset policymaking.
Warren argued that as the federal government deepens its engagement with the blockchain sector, it inadvertently drives up valuations for existing cryptocurrency holders, raising concerns about conflicts of interest among officials shaping these policies.
Her letter to Sacks demands clarity on whether he and his colleagues stand to benefit from the decisions they make.
She also criticized moves by President Donald Trump’s administration, claiming they cast doubt on the ethical integrity of its crypto-related decision-making processes.
