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.
Sweden’s financial regulator fined Klarna Bank 500 million Swedish crowns ($46 million) on Wednesday for violating anti-money laundering rules. It said a review of the buy now, pay later company
European Union finance ministers failed to agree on a tax on digital income, despite a last-minute plan by Germany and France to save the proposal. The EU’s executive arm proposed a 3 percent
The European Commission (EC) has clamped down on VAT-based fraud by introducing a new set of rules for EU member states, effective 1 January. CESOPEU PSPs are set to share transactional data to tackle
Press Release from Carey Olsen, Thursday 19 November, 2024. Carey Olsen and Alter Domus have advised Geneva-based healthcare and sustainability investment firm Gyrus Capital (“Gyrus”)