Democratic lawmakers are pushing legislation to end the tax breaks that have drawn thousands of wealthy crypto investors to Puerto Rico, arguing these benefits haven’t boosted the local economy and inflated housing costs. The Fair Taxation of Digital Assets in Puerto Rico Act of 2025 introduces a requirement for all digital asset income from Puerto Rico residents to be taxed under federal rules similar to mainland US income tax, ending the loophole allowing for no or minimal taxes on crypto profits. While supporters argue this measure would attract more investment and innovation, critics note most benefits have gone to wealthy individuals, exacerbating economic inequality. This bill comes as Puerto Rico’s governor attempts to tighten existing tax policies that offer significant financial incentives for crypto investors. The potential outcome of this bill is uncertain, with Republicans likely opposing such a move due to their staunch support for low taxes and the current political climate surrounding cryptocurrencies. However, this effort highlights the ongoing debate between fostering innovation and achieving economic justice.