Biden to propose changing crypto tax rules: WSJ
Biden to propose changing crypto tax rules: WSJ Mike Dalton · 37 mins ago · 2 min read
The change is expected to prevent wash trading and raise $24 billion.
2 min read
Updated: March 9, 2023 at 1:17 am
Cover art/illustration via CryptoSlate
U.S. President Joe Biden will propose changes to crypto taxation in an upcoming budget plan, according to a report from the Wall Street Journal on March 8.
Biden’s budget plan will target wash trading
Biden’s budget plan could directly affect crypto investors.
The Wall Street Journal says that the president will propose a change to crypto taxation rules to target wash trading. Though rules against wash trading apply to stock and bond trading, those rules are not currently being applied to cryptocurrency trading.
This means that investors can sell certain investments and accept a tax-deductible loss before reinvesting — an illegal practice that the government undoubtedly wants to prevent.
The new crypto tax policy is projected to raise $24 billion. It will be part of Biden’s broader 2024 budget plan, which aims to cut federal budget deficits by $3 trillion over a decade. The proposal may not succeed due to opposition from the Republican party, which currently has a House majority despite Biden’s Democratic leadership and a Democratic Senate.
Biden is expected to release the new budget plan on Thursday, March 9.
Other changes to crypto taxes
While Biden’s changes are not guaranteed to come into effect, various other recent tax policy changes will affect crypto investors in the U.S. this tax season.
The IRS expanded the scope of crypto tax rules in February. Those changes mean that anyone who has dealt with digital assets must now report their activities.
Other reports suggest that non-fungible tokens (NFTs) could be taxable. Additionally, some cryptocurrency exchanges began to provide 1099-B forms to their users in 2022, providing crypto investors with more information to report to the IRS.
Recent third-party surveys from CoinLedger suggest that many crypto investors have not included crypto transactions on their tax reports when necessary. Only 58% of those surveyed confirmed included cryptocurrency on their tax reports in 2022.
US Banks borrow record-high $164.8B from Fed backstop facilities
US Banks borrow record-high $164.8B from Fed backstop facilities Dorian Batycka · 5 hours ago · 2 min read
Meanwhile, Circle’s USDC stablecoin maintains $1 peg despite recent banking contagion and widespread fear in the banking sector.
2 min read
Updated: March 17, 2023 at 3:08 pm
Cover art/illustration via CryptoSlate
During the week ending March 15, two Federal Reserve backstop facilities were utilized by US banks to borrow a total of $164.8 billion.
The traditional liquidity backstop for banks, also known as the discount window, saw a record-high borrowing of $152.85 billion, which increased significantly from the previous week’s $4.58 billion.
According to a March 17 report in Bloomberg, this surpasses the all-time high of $111 billion reached during the 2008 financial crisis.
According to the data, the Bank Term Funding Program, which is a new emergency backstop launched by the Fed on Sunday, recorded $11.9 billion in borrowing. The combined credit extended through both backstops highlights that the banking system is still vulnerable and struggling with deposit outflows resulting from the recent collapses of Silicon Valley Bank of California and Signature Bank of New York.
On March 16, the largest banks in the country reached an agreement to deposit roughly $30 billion with First Republic Bank as part of an initiative led by the US government to stabilize the struggling California-based lender.
This after the decision last weekend by the US Treasury and the Federal Deposit Insurance Corp. (FDIC) to safeguard all depositors of SVB and Signature, going beyond the usual deposit insurance limit of $250,000.
However, Reuters reported that any bank bidding for Signature, one of the distressed banks that had a bank account belonging to Circle, would be forced to give up any crypto-related aspects of the business.
As it means for crypto, Circle, the founders of the second largest stablecoin market cap, USDC, the stablecoin was eventually able to get to its $1.00 peg, despite trading to as low as .88 cents over the weekend.
Read more: Circle says substantially all USDC minting, redemption backlogs are resolved after wild week
“Trust, safety, and 1:1 redeemability of all USDC in circulation is of paramount importance to Circle,” CEO Jeremey Allaire said on a March 16 episode of the Bankless podcast.
“I’m a very deep believer in full-reserve banking,” Allaire added, the “idea that we don’t need to have a fractional reserve, where the base layer in government obligation money, and the payment system innovation built on top is done via the internet using software.”
Coinbase spent $3.4M on lobbying in 2022, while FTX spent $720k
Coinbase spent $3.4M on lobbying in 2022, while FTX spent $720k Zeynep Geylan · 55 mins ago · 1 min read
Coinbase spent $3.4 million on lobbying activities in 2022, while Binance US and FTX US spent $960,000 and $720,000, respectively.
1 min read
Updated: February 28, 2023 at 7:14 pm
Cover art/illustration via CryptoSlate
Coinbase spent $3.4 million on lobbying activities in 2022, ranking second, while Binance US and FTX US ranked ninth and 13th, respectively, according to a recent report by Money Mongers.
The exchange’s 2022 lobbying spend marks a 122% increase from 2021’s $1.52 million, according to the Money Mongers report.
Binance U.S. grew its budget for lobbying by 500% and spared $960,000 in 2022 compared to $160,000 in 2021. This placed Binance U.S. in ninth place in the ranking. FTX.U.S., on the other hand, ranked 15th and spent $720,000 for lobbying in 2022, marking a 1340% increase from $160,000 in 2021.
Lobbying activities since 2017
Blockchain Association and Robinhood followed Coinbase as the second and third largest spenders on lobbying activities by sparing $1.9 million and $1.8 million in 2022, respectively.
Coinbase, Blockchain Association, and Robinhood also rank among the top five biggest lobbying spenders since 2017, sparing over $5.59 million, $3.9 million, and $3.89 million, respectively.
On the other hand, CME Group holds the leadership in the ranks by having spent over $8.26 million on lobbying activities in the last six years. Binance U.S. and FTX U.S. spared a budget for lobbying activities in 2021 and 2022, placing them 10th and 15th in the ranking, respectively.
British MP Matt Hancock launches NFT charity project for Ukraine
British MP Matt Hancock launches NFT charity project for Ukraine Liam ‘Akiba’ Wright · 2 hours ago · 2 min read
A Ukrainian family who fled Kyiv is launching a charity NFT collection to raise money for CARE International’s Ukraine Humanitarian Appeal.
2 min read
Updated: February 21, 2023 at 4:24 pm
Cover art/illustration via CryptoSlate
British MP Matt Hancock is continuing his mission to support blockchain technology through a new NFT collection called “From Ukrain with Love,” according to a statement given to CryptoSlate.
From Ukraine with Love
The NFT collection comprises works painted by Ukranian artist Oleg Mischenko before the war and will be sold at The NFT Gallery in London’s Mayfair on Monday, 27th February. Funds from sales will go toward CARE International UK’s Ukraine Humanitarian Appeal. The collection, “From Ukraine with Love,” was curated by Irina Korobkina, who fled Kyiv with her 5-year-old daughter following Russia’s invasion of Ukraine.
Hancock’s involvement stems from hosting Korobkina in the UK since April 2022. Mischenko remained in Ukraine painting as “shells rained down around him” before joining his family in December.
“My husband’s paintings and this NFT collection gives my family and my country hope. Each piece depicts nature in our wonderful Ukraine. It was a beautiful, flourishing, peaceful country until Putin waged this illegal and barbaric war.”
Matt Hancock champions crypto
Regarding the NFT collection, Hancock commented;
“I’m incredibly proud of Irina and Oleg, and I am honoured to support the family with their charity NFT collection[…] Oleg is an incredibly talented artist, and his ‘From Ukraine, With Love’ collection is truly stunning.”
Hancock has been vocal in supporting the blockchain industry with calls to make the UK a “crypto hub.” The MP for West Suffolk has previously focused on advocating for a “growth-maximizing view where revenues in the future will be far greater” in relation to crypto tax and regulation.
However, the launch of this new NFT collection showcases Hancock’s desire to not only champion blockchain as a technology but also to promote its use cases.
Speaking at Zebu Live in London on Sept. 23, 2022, Hancock revealed that he did not hold any crypto assets, including Bitcoin. The MP argued that by not holding crypto personally, he was more able to be objective about its future.
However, this approach is uncommon within the space as a whole, with the majority of influential figures in the crypto space personally investing large sums into digital assets.
Hancock has been bullish on blockchain for some time. In 2016, when he was the Paymaster General, he stated,
“The government cannot bury its head in the sand and ignore new technologies as they emerge[…] That is partly what happened in the past in government with the web … We cannot let (that) happen again by standing still.”
While most of Hancock’s efforts to promote crypto within the UK took place before 2020, he reemerged as the political face of crypto within the British government in 2022, with numerous appearances endorsing UK crypto.
The NFT collection is hosted on Coinbase’s NFT marketplace and launches on Feb. 27.
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