Cathie Wood, founder of ARK Invest, made a bold prediction on the latest Bitcoin Brainstorm podcast: President Donald Trump could eliminate capital gains taxes on small Bitcoin payments within this year. She linked this potential move directly to the upcoming 2026 midterm elections, crypto voter support, and Trump's desire to avoid a lame-duck status.
Midterms as a Policy Accelerator
Wood argued that crypto remains politically critical for Trump as midterms approach. She noted that the 2026 elections could weaken presidential influence, motivating Trump to deliver on crypto promises early. According to Wood, Trump plans to work with his crypto and AI czar to advance a de minimis tax ruling—a rule that would remove capital gains taxes on small Bitcoin transactions. She emphasized that grassroots crypto usage heavily depends on such tax clarity.
Strategic Reserve: From Seized Assets to Open-Market Buys
Wood also shed light on the U.S. Bitcoin strategic reserve. Established by executive order early in Trump's second term, the reserve currently holds only confiscated Bitcoin, and Trump has pledged not to sell those holdings. However, Wood pointed out that the original target was to accumulate one million bitcoins, a figure that strongly suggests future purchases will occur. She added that buying Bitcoin could bolster Trump politically ahead of the midterms.
Family Exposure and the Crypto Electorate
Wood noted that crypto voters played a role in Trump's election victory. She also cited Trump's family exposure to Bitcoin and other digital assets as factors reinforcing continued White House engagement with the sector. Describing crypto as part of Trump's strategy to remain productive rather than symbolic during his remaining term, Wood said the president sees digital assets as aligned with future economic growth.
While some decentralized projects tied to the Trump family have struggled recently, Wood framed broader crypto policy as separate from those outcomes. She concluded that the combination of midterm timing, policy windows, and industry support raises the likelihood of action, and removing capital gains taxes on Bitcoin payments could happen this year.