- White House economic advisers discuss the president’s fiscal priorities and policies in a new document.
- The President’s report sheds light on digital assets.
- A chapter of the study shows that cryptocurrencies have no intrinsic value.
- The president’s briefing could provide guidance for taxing NFTs.
Cryptocurrency regulation It was of great interest to President Joe Biden, who cited it as A matter of national security. The boss has repeatedly pushed for speed and finality Congressional action against digital assets.
The time for regulation is likely to be near, as the sector finds itself in the crossfire of the government. In a new document, economic advisers from the White House on behalf of the president seek to clarify the administration’s stance on cryptocurrency.
And things are looking far from favorable.
Friend or Joe?
On Monday, March 21, the White House published Annual edition ofPresident’s economic reportwhich sheds light on its financial plans and priorities for 2023.
The briefing comes amid growing concerns about cryptocurrencies yet Bank collapse in the country.
On a not so positive note, the president’s 513-page document addresses digital assets directly with a dedicated chapter, to illustrate management position in the space. The report discusses various claims from the crypto industry, refuting the asset’s role as investment and payment tools, and more.
determine the previous
In the first mention of cryptocurrency, the post was made confirmed:
“Blockchain technology has fueled the rise of financially innovative digital assets that have proven to be highly volatile and vulnerable to fraud.”
The document pointed out several key issues in the sector, including basic design, basic principles, prevalence of scams, and more.
President briefing cited various disasters In the crypto sector, including a breakdown terra And FTX, to explain how assets can harm “ordinary Americans”. Interestingly, the report left no contagion untouched, setting a precedent that cryptocurrencies do more harm than good.
Here is a summary of what the President’s report claimed:
- The basic design of digital assets reflects ignorance of basic economic principles.
- The lack of intrinsic value makes crypto assets highly volatile.
- This sector is prevalent in market manipulation using FTX and Alameda Research as examples.
- stablecoins At risk of running, indicating a breakdown UST.
- Cryptocurrencies are ineffective as an inflation hedge, which indicates their price performance in 2021 and 2022 amid rising inflation.
- The current central internet, Web2, is more feasible than Web3, quotes Signal founder Moxie Marlinspike.
- Real-time payment systems such as FedNow and American CBDC It can provide greater benefits to marginalized groups.
Despite listing her concerns, the document does not delve into future regulations or congressional actions, and remains vague about her plans. However, she adds, the underlying blockchain technology could find its way into support broader financial systems In the future.
Most of the sector is regulated, the briefing concluded, and policymakers are working to bring more companies into compliance. This document could provide additional guidance recently requested by the IRS regarding NFTs.
The IRS is asking you, and they want your feedback
in notice Posted on March 21, the US Internal Revenue Service (IRS) announced that it plans to tax NFTs as collectibles. The IRS called for feedback from the US consensus on how to tax the assets.
According to the government agency, the holdings cannot be Taxable as cryptocurrency, referring to capital gains tax, and needing additional guidance. NFTs can be subject to capital gains tax of up to 28% if they are treated like cryptocurrencies.
However, the regulator has called for applications to be submitted by June 19, meaning US taxpayers who file their 2022 tax returns before April 18 will not be affected.
on the flip side
- On March 20th Hong Kong It set out to become a crypto-friendly country by introducing attractive legislation for crypto businesses.
Why should you bother
The president outlined a definitive indictment of the cryptocurrency sector, making his position crystal clear. It is clear from the document that US regulators are less inclined to advance crypto and more interested in regulating the space dramatically through legislation, taxation, and more.
Read about cryptocurrency countries:
The 12 most friendly countries to invest in cryptocurrencies.
Read how TSM moved on from the FTX meltdown:
TSM signs partnership with Web3 Project Avalanche after FTX deal collapses