Farage Calls for Flat 10% Crypto Tax and National Bitcoin Reserve
At the Digital Asset Summit in London, British politician Nigel Farage unveiled a sweeping crypto tax reform plan that could reshape the United Kingdom’s stance toward digital assets.
Farage proposed a flat 10% capital gains tax on cryptocurrency investments — significantly lower than current rates — and suggested allowing citizens to pay their taxes using crypto. He also advocated for creating a state-owned Bitcoin reserve, funded by confiscated digital assets from criminal investigations.
According to Farage, these measures would make the UK a “world leader in blockchain innovation” and attract global crypto capital back to Britain. “If we want the next generation of financial talent to stay here, we must embrace digital freedom, not regulate it to death,” he told attendees.
The proposal drew mixed reactions. Industry participants welcomed the idea of a simplified tax framework but questioned the feasibility of managing a sovereign Bitcoin fund. Critics in Parliament labeled it “populist crypto showmanship,” while others praised the call for regulatory modernization.
U.S. Senate Votes to Repeal Biden-Era DeFi Tax Rule
Across the Atlantic, the U.S. Senate voted to repeal the Treasury Department’s 2023 rule requiring DeFi platforms and self-custody wallet providers to report user transactions to the IRS starting in 2027.
The measure, backed by a bipartisan coalition, was celebrated by the crypto industry as a “win for privacy and innovation.” Lawmakers argued that the rule imposed unrealistic obligations on decentralized protocols that lack a centralized entity to collect or report user data.
Senator Cynthia Lummis, a long-time crypto advocate, said the repeal “restores common sense” to digital asset regulation. “You can’t regulate DeFi as if it were a bank. The future of finance must be free, fair, and decentralized,” she stated.
However, the White House criticized the Senate’s move, warning it could weaken anti-money laundering oversight and complicate tax enforcement. The bill now heads to the House of Representatives, where another heated debate is expected.
Global Shift Toward Pragmatic Crypto Policy
Both developments signal a broader international shift toward more pragmatic crypto regulation. While the UK explores tax incentives to boost innovation, the U.S. focuses on reducing regulatory friction in decentralized finance.
Analysts suggest that if these policies gain traction, they could reignite global competition for crypto-friendly jurisdictions and shape how digital economies evolve in 2026 and beyond.
