Regulation
Donald Trump’s Crypto Commitment, Senate Bill Spark Market Optimism
The cryptocurrency market has been a rollercoaster, with investors suffering through a prolonged bear market. However, a change of wind may be on the horizon. Exciting developments on both the legislative and event fronts are injecting a much-needed dose of optimism into the cryptocurrency world.
Former President Donald Trump made headlines by promising to ease regulations and support innovation if he wins the election in November. This has made cryptocurrency a significant political topic, sparking interest in how future policies could impact the industry.
What is the new bill about?
A major bill focused on cryptocurrency taxation has been reintroduced United States Senate. The Virtual Currency Tax Fairness Act proposes a “sensible de minimis exemption,” which would eliminate capital gains taxes on small transactions and provide a similar exemption for low-value trades, similar to the current foreign exchange exemption. This bill highlights a strong focus on cryptocurrency regulatory reform in this election cycle.
Another bill has been introduced in the U.S. Congress, garnering significant bipartisan support. Jerry Brito, executive director of Coin Center, noted that the bill is supported by key sponsors including Senators Ted Budd, Kyrsten Sinema, Cynthia Lummis, and Kirsten Gillibrand. This represents the first bipartisan and bicameral effort to address cryptocurrency taxation.
Coin Center has actively supported these reforms and worked with senators to advance the bill.
Industry reacts
The cryptocurrency community has welcomed these legislative moves, seeing them as potential drivers for increased investment and a friendlier regulatory environment. Pro-crypto senators like Cynthia Lummis and Kirsten Gillibrand led the charge. Lummis, in particular, criticized the Justice Department’s stance on non-custodial software wallets and urged Congress to establish clear regulations, especially with the SEC’s recent approvals of spot Ethereum ETFs.
Lummis and Gillibrand’s initiatives also include proposals to regulate stablecoins, demonstrating their continued commitment to comprehensive cryptocurrency regulation.
What’s next?
As these new legislative efforts take shape, cryptocurrency investors are hoping for a more favorable regulatory environment if Trump wins the election. Keep an eye on US tax law updates, as significant changes to the tax system for virtual currencies could be on the horizon!
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Will these new bills attract more investors to the cryptocurrency market? Let’s discuss.