As the world of digital assets and cryptocurrencies continues to evolve, regulatory bodies are taking a closer look at the market to ensure fair practices and address potential risks. In line with the Biden-Harris Administration’s Infrastructure Investment and Jobs Act, the US Department of the Treasury and the IRS have proposed new regulations that will impact brokers dealing with digital assets. Additionally, renowned finance professor Aswath Damodaran has changed his stance on Bitcoin, referring to it as “the currency that nobody uses.” These developments shed light on the challenges and ongoing debates surrounding the cryptocurrency space.
Regulatory Measures to Address Tax Evasion Risks:
The proposed regulations aim to tackle tax evasion risks associated with the sale and exchange of digital assets. Brokers, including digital asset trading platforms and payment processors, would be required to report customer transactions and furnish statements. This additional transparency seeks to ensure fair taxation rules for everyone involved. To assist users with determining their tax obligations, brokers would need to provide a new Form 1099-DA specifically tailored to digital asset transactions. These regulations are projected to take effect in 2026 and are estimated to generate around $28 billion in revenue over the span of 10 years.
Aswath Damodaran’s Shifting Opinion on Bitcoin:
Aswath Damodaran, a respected finance professor at NYU, has significantly altered his perspective on Bitcoin. Previously referring to it as “millennial gold” and envisioning its potential global acceptance, Damodaran has now reclassified Bitcoin as a collectible with limited practical uses. He challenges the notion that Bitcoin can serve as an effective hedge against inflation, instead viewing it as deeply correlated with equities and behaving more like a stock. However, it’s important to note that Bitcoin’s correlation with traditional finance has recently decreased. Damodaran’s ever-changing stance on Bitcoin mirrors the shifts in opinion often observed within the cryptocurrency sector, with even renowned figures like Jim Cramer navigating between proponent and critic.
A Whales’ Excitement in the Shiba Inu Community:
In the realm of digital assets, exciting developments continue to catch the attention of investors and enthusiasts. Recently, an anonymous whale made headlines by purchasing a significant amount of SHIB tokens from the Gemini exchange. The whale’s purchase of 708.41 billion SHIB tokens, worth almost $6 million, in a single transaction sparked excitement within the Shiba Inu community. The whale subsequently transferred the tokens to a dormant wallet address, a move that intrigued speculators. Although this is not the first instance of a whale’s influence on the SHIB ecosystem, investors remain hopeful for a potential price recovery. Despite recent developments, such as the launch of Shibarium and increased SHIB burn rates, the price of SHIB has not yet responded positively and currently trades at $0.000008062.
The US Treasury and IRS’s proposed regulations on digital asset sales demonstrate the increasing attention and concern surrounding cryptocurrencies. By addressing tax evasion risks, these regulations aim to establish fair rules for brokers and users alike. In the face of evolving opinions, Aswath Damodaran’s change of perspective on Bitcoin reminds us of the ongoing debates and uncertainties within the cryptocurrency space. Furthermore, the excitement generated by whale activities in the Shiba Inu community highlights the continued interest and potential for growth in the digital asset market. As the blockchain ecosystem continues to develop, it is crucial to stay informed and navigate this space with careful consideration.
