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.
The South Korean government has introduced a new digital system to track tax evaders’ cryptocurrency transactions. In a bid to crack down on tax evaders, the Gyeonggi tax department in South Korea
China’s stance on cryptocurrency has shifted significantly over the years, with the nation now hosting some of the world’s harshest regulations.Things are set to become even tougher for China-based
ETFs using the term ESG or sustainable in their name must have at least 80% of investments tied to environmental or social characteristics, according to the EU’s new fund naming rules. The European
Press Release from Carey Olsen, Friday 18 October, 2024. Carey Olsen is the highest-ranking offshore law firm in the Chambers UK Legal Guide 2025, having achieved 10 out of a possible 12 Band 1 rankings.