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Policymakers Ignore Potential Crypto Tax Income for Infrastructure

Policymakers Ignore Potential Crypto Tax Income for Infrastructure

Bitget-RWA2025/10/28 17:38
By:Bitget-RWA

- Q3 2025 crypto M&A hit $10B as institutional demand and pro-crypto regulations drive integration with traditional finance. - Despite robust VC funding (e.g., Coinbase's $375M Echo acquisition), no evidence links crypto taxes to public infrastructure spending. - Geopolitical stability (e.g., U.S.-China talks) boosts crypto markets, yet policymakers ignore channeling crypto tax revenue into infrastructure unlike energy sectors. - $550B Japan-U.S. energy deals and Hitachi's AI partnerships highlight infrast

As reported by a

, the value of mergers and acquisitions (M&A) in the crypto sector soared to a record $10 billion during the third quarter of 2025, fueled by greater institutional involvement and favorable regulations for digital assets. The report highlights a fundamental change in how digital assets are merging with mainstream finance, with companies placing greater emphasis on regulatory compliance, payment systems, and treasury operations to manage market fluctuations. At the same time, venture capital investment remained strong, with Coinbase’s $375 million purchase of the on-chain investment platform Echo and Pave Bank’s $39 million Series A funding round serving as examples of ongoing investor optimism, according to a .

Policymakers Ignore Potential Crypto Tax Income for Infrastructure image 0

Although the crypto industry is experiencing significant financial growth, there is no clear indication that taxes collected from crypto transactions are being used to support public infrastructure. For example, Hitachi Ltd.’s recent agreement with the U.S. Department of Commerce centers on energy systems and artificial intelligence, but does not pertain to crypto taxation, as detailed in a

. Likewise, Japan’s $550 billion investment initiative for U.S. energy and transportation projects is focused on strengthening domestic and allied economic security, not on revenue from cryptocurrencies, according to a . These efforts are part of broader industrial and geopolitical agendas, rather than being funded by crypto tax proceeds.

Investment related to cryptocurrencies continues to drive innovation, with companies like Bluwhale and BitcoinOS raising $10 million each to advance decentralized finance solutions and blockchain infrastructure, as noted by crypto.news. However, such funding is separate from government infrastructure expenditures, which are generally financed through standard tax income or dedicated bonds. The lack of a direct connection between crypto tax revenue and infrastructure investment points to a gap in policy: despite the sector’s substantial economic contribution, regulations have not yet directed its tax proceeds toward public benefit projects.

Recent international developments, including confirmed discussions between U.S. President Donald Trump and China’s President Xi Jinping, have provided short-term stability to crypto markets, according to

. climbed 1.6% on the news, demonstrating the impact of global events on digital asset prices. Nevertheless, even as the value of crypto assets rises, lawmakers have yet to formally connect crypto tax income to infrastructure funding—unlike sectors such as energy, where taxes and incentives frequently support grid upgrades or renewable energy, as referenced in the MarketScreener report.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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