Eric Trump recently mentioned that there will soon be no capital gains tax for US-based crypto projects like XRP and HBAR. That means investors in these projects could spend considerably less when cashing out their crypto for a profit. However, crypto projects based outside the U.S. will not be so lucky, incurring a hefty 30% capital gains tax instead. This move could help bring additional crypto innovation to the U.S. and provide a substantial comparative advantage for domestic projects.
And in Washington, Ted Cruz stirs up controversy as he plans to challenge a new IRS rule targeting decentralized finance (DeFi). Finalized in December, the rule mandates that DeFi brokers file detailed tax forms (Form 1099) reporting users’ transaction amounts, names, and addresses. Cruz is concerned that this rule unfairly targets DeFi platforms, which are driven by decentralized autonomous organizations (DAOs) that often lack central parties to report such info.
Cruz, a vocal proponent of crypto and a still-loyal enemy of Central Bank Digital Currencies (CBDCs), maintains that the rule hinders innovation, endangers user privacy, and adds unnecessary complications in the way of decentralized systems. He plans to overturn the regulation within 60 days, using the Congressional Review Act. Now that he holds the Republican majority in Congress, his resolution has the potential to gain traction.
Changes announced in this week’s updates represent a sea change in how crypto is taxed and regulated in the U.S. and reveal a growing political will to champion the industry. If Cruz’s efforts are successful, it could preserve DeFi’s decentralized status while enhancing the U.S.’s position as a center of crypto innovation.
U.S. Senator Chris Murphy (D-Conn.) is calling for legislation to ban prediction markets that allow traders to bet…
The U.S. Internal Revenue Service (IRS) has proposed a new rule that would allow cryptocy brokers to deliver…
Global fintech powerhouse Revolut has filed an application for a U.S. banking license, a move that would allow…
A man accused of stealing tens of millions of dollars in cryptocy from U.S. government…
Intercontinental Exchange (ICE) — the parent company of the New York Stock Exchange — has taken a strategic…
A new study from the Bitcoin Policy Institute (BPI) found that leading artificial intelligence models overwhelmingly favor Bitcoin…