If the US *actually* wants to be the Crypto capital of the world they would abolish capital gains tax on Crypto. Otherwise people will continue doing business in crypto tax-free jurisdictions like Singapore, Dubai, etc. for obvious reasons.

If that is a bridge too far they can begin with the baby step of abolishing tax on crypto-to-crypto swaps and only tax people once they convert to USD. This would include no taxing on swaps into crypto stablecoins. This keeps liquidity locked in the system and promotes building.