Pierre Rochard, director of asset manager Strive which holds 12,797.9 Bitcoin, has publicly slammed Washington's tax regime, arguing it is directly undermining President Trump's vision of making the United States a "Bitcoin superpower." He contrasts the US's high capital gains tax with zero-tax jurisdictions like Dubai and Singapore, and warns that a new IRS reporting rule—Form 1099-DA, set to take effect in 2026—will force exchanges to report every crypto sale, adding massive compliance costs and privacy concerns.
Policy Contradiction: White House Welcomes, IRS Reaches In
Trump has pushed pro-crypto initiatives like the GENIUS Act and relaxed SEC/CFTC oversight, but Rochard says the tax framework acts as a brake. Starting in 2026, 1099-DA will require detailed reporting of each crypto transaction, creating a heavy filing burden. On the state level, California has proposed a 5% wealth tax on net worth exceeding $1 billion, including unrealized gains. For Strive, this could force partial liquidation of its Bitcoin holdings.
"While Dubai and Singapore attract talent with 0% rates, the US lets the IRS reach into every transaction. That's a terrible choice."
Rochard's criticism reflects industry-wide anxiety: capital will flow to the least costly jurisdictions.
Global Race: Low-Tax Havens Draw Capital
El Salvador, Thailand, Puerto Rico, and Germany (tax-free after one year of holding) all offer lower or zero tax treatment for crypto. In contrast, the US piles federal capital gains tax on top of state-level wealth tax proposals, creating a "pincer movement." Research estimates that if 1099-DA and the California wealth tax both take effect, high-net-worth investors could face tens of millions of dollars in additional annual compliance costs.
If capital and developers migrate to friendlier tax markets, Trump's "Bitcoin superpower" pledge risks becoming hollow. Policy watchers warn that unless the federal government aligns tax policy with industrial strategy, the US could “accelerate with one foot on the brake" in the decentralized competition. 2026 will be a test: whether Washington adjusts taxes to retain talent or lets capital vote with its feet.