Bitcoin Surges Amid Trump’s Crypto Tax Proposal and Blockchain Adoption

Highlights

• Bitcoin breaks new all-time highs following Trump’s pro-crypto statements at NYSE.
• Trump administration hints at tax-free gains for U.S.-based crypto projects like ADA, ALGO, and XRP.
• Trump-backed World Liberty Financial integrates major blockchain protocols, boosting adoption.

Bitcoin (BTC) set a new record on December 15, surpassing US$106,000, following bullish momentum fueled by President-elect Donald Trump’s remarks at the New York Stock Exchange (NYSE). Trump’s comments suggested the potential creation of a U.S. Bitcoin strategic reserve, similar to the nation’s oil reserve, alongside proposals for a favorable tax structure on U.S.-based crypto projects.

The surge in BTC price was further driven by dovish monetary policies, anticipated interest rate cuts, and significant blockchain adoption developments connected to Trump-backed projects.

Trump’s Pro-Crypto Statements at NYSE

During a high-profile NYSE appearance, Trump underscored the need for the U.S. to take the lead in the global crypto market. He expressed openness to establishing a Bitcoin reserve, stating, “We’re going to do something great with crypto because we don’t want China, or anybody else… but others are embracing it, and we want to be ahead.”

Additional momentum came after Strike CEO Jack Mallers speculated that Trump could sign an executive order designating Bitcoin as a reserve asset upon assuming office.

Tax-Free Gains for U.S.-Based Cryptocurrencies

Reports indicate the Trump administration is exploring measures to make profits from U.S.-issued cryptocurrencies tax-free. Assets like Cardano (ADA), Algorand (ALGO), and XRP (XRP)—issued by U.S.-based entities—could benefit under this proposal.

Eric Trump, during recent public remarks, appeared to confirm these plans, signaling that businesses operating in the crypto sector may also find pathways to relocate operations to the United States. These initiatives align with Trump’s broader goal of positioning the U.S. as a global hub for cryptocurrency development.

Global Interest Rate Policies Favor BTC

Market sentiment received additional support from the European Central Bank’s recent rate cut of 25 basis points, accompanied by signals of further reductions. In the U.S., the Federal Reserve is set to decide on its final interest rate policy for 2024 during the December 17-18 meeting. The CME FedWatch tool places a 96% probability on a 25 basis point reduction.

Lower interest rate environments historically create favorable conditions for digital assets like BTC, as capital becomes cheaper and traditional savings instruments lose appeal.

World Liberty Financial Embraces Blockchain Integration

Trump-backed World Liberty Financial (WLFI) made headlines after reports of significant crypto purchases and integration with blockchain protocols. Wallets associated with the decentralized finance (DeFi) platform acquired millions of dollars worth of cryptocurrencies, including Ethereum (ETH), Aave (AAVE), and Chainlink (LINK).

Onchain analysis from Lookonchain revealed that WLFI spent approximately US$30 million to acquire over 8,100 ETH at an average price of US$3,700 between December 1 and December 12. This activity provided a notable boost to Ether’s price momentum.

World Liberty Financial is a decentralized platform that enables borrowing, lending, and liquidity pool creation for digital assets. Trump, listed as the project’s chief crypto advocate, is joined by his sons Eric and Donald Jr. as web3 advisors, while Barron Trump holds the role of “DeFi visionary.”

The platform is leveraging Chainlink (LINK) oracles for pricing data and cross-chain interoperability, strengthening its connectivity within the broader blockchain ecosystem. Additionally, a recent DAO proposal to deploy an Aave V3 instance on Ethereum gained overwhelming support, aiming to attract new users to World Liberty Financial’s platform.

The combination of Trump’s crypto-friendly policies, tax incentives for U.S.-based projects, and growing blockchain adoption has driven Bitcoin and other major cryptocurrencies to new highs. With the potential for lower interest rates and evolving regulatory frameworks, the crypto sector continues to see increasing global attention.

World Liberty Financial’s blockchain initiatives signal a significant step toward mainstream decentralized finance adoption, positioning U.S.-based platforms at the forefront of innovation in the evolving crypto landscape.