David Sacks, Trump's crypto advisor, is slamming a proposed 0.01% tax on cryptocurrency trades. He argues even tiny fees drive users away. Like a toll booth on an unfinished highway, Sacks says. The tax could wreck Trump's "Digital Fort Knox" vision for America. Sacks sold his own crypto to avoid conflicts, but insists any transaction cost hurts adoption. Seems the devil's in the decimal points for America's bitcoin ambitions.
David Sacks, the newly appointed crypto advisor for Trump's administration, is slamming a proposed 0.01% tax on cryptocurrency transactions. The seemingly tiny levy might look harmless on paper, but Sacks isn't buying it. He argues that even minor transaction fees could suffocate crypto adoption in the United States, potentially derailing Trump's ambitious plan to make America a cryptocurrency capital.
History tells us something important about taxes—they rarely stay small. What starts as a "harmless" 0.01% fee has an uncanny tendency to balloon over time. And in the fast-moving world of crypto, even small friction matters. Every intra-wallet transfer, every routine transaction—suddenly they all cost more.
The timing couldn't be worse. The U.S. already lacks extensive crypto regulations, leaving the market in a perpetual state of uncertainty. Adding a transaction tax now would be like putting a toll booth on a half-built highway. Other countries without such barriers would simply attract more users. Simple economics. Hardware wallet solutions have become essential for protecting assets in this uncertain regulatory environment.
Adding a crypto tax now is like installing a toll booth on an unfinished highway—drivers will just take another route.
Meanwhile, the government's track record with Bitcoin isn't exactly stellar. Federal agencies have historically sold seized cryptocurrencies without much strategic thought, potentially costing taxpayers $16-17 billion in lost value. Under the new executive order, the administration plans to maximize the value of government-held bitcoin instead of continuing the previous ad hoc selling strategy. Notably, Sacks recently sold all cryptocurrency in his personal portfolio to avoid conflicts of interest in his government role. Not exactly Warren Buffett-level investing there.
Trump's executive order to create a Strategic Bitcoin Reserve represents a dramatic shift in thinking. The concept of a "Digital Fort Knox" sounds impressive, but a transaction tax could undermine the entire effort before it begins.
Senator Warren has raised concerns about potential conflicts of interest, particularly given Trump's personal investments and connections to companies like World Liberty Financial, which has made significant crypto purchases.
The debate ultimately centers on a fundamental question: Can the U.S. simultaneously tax cryptocurrency transactions and become a global crypto leader? Sacks doesn't think so. In his view, you can either welcome the future or tax it into submission. Not both.
And 0.01% might not sound like much, but in crypto, the details matter. A lot.
