Central banks, governments, and traditional financial institutions are all having a hard time swallowing the bitter pill of truth that is the cryptocurrency market. The new asset class that is distinct from precious metals, stocks, bonds, and dividends has become the most popular choice of investment for people all around the world. During the Biden administration, while the government was unable to see the value of the dollar constantly falling and difficulties with handling the COVID-19 destruction, there is little spare time to think about the crypto markets.
The federal watchdogs are mostly concerned about the diminishing number of jobs and the increasing inflation that has started to hollow out the American economy. However, the US treasury secretary, Janet Yellen, claimed upon her appointment that she has serious concerns about the massive carbon footprint from the mining rigs. A new report published by Washington Post suggests that the Biden administration is trying to come up with a better plan.
Has Crypto become So Big that the Government of the USA can no Longer Contain it?
There have been soothsayers who have issued warnings that the government might impose a cryptocurrency ban one way or the other. However, there are others like David Rubenstein, head of the Carlyle Group, who recently remarked that cryptocurrencies are here to stay, and it would be impossible to keep them off the market at this point. As per the Washington Post article, the president-elect has called for a better way to eliminate big-shot cryptocurrency and allow the retail investors to keep fooling around with Dogecoin.
The main purpose of the federal government is to find legal loopholes to disqualify cryptocurrencies from entering into the mainstream market places. Options like money laundering, extortion, illegal sale of weapons, war funding, and other types of terrorism financing have been discussed by liking them with crypto. Many critics have claimed that government could enforce a crackdown on crypto-like gold to safeguard its center of power and commercial dependency.
Internal Revenue Service could be Incentivized for Introducing Cryptocurrency Taxes
One of the biggest issues with cryptocurrencies is that there are no clear guidelines for taxation. A few weeks ago Biden administration claimed they would increase the capital gains taxes for high net worth individuals. The news broke the crypto markets and made a bad impact on the US Stock exchange.
A few days ago, internal revenue services (IRS) decided to implement a tax that would be applicable on $10K or higher crypto transactions. In the current meeting, the possibility of promoting the IRS to make these amendments were also added to the list of agenda.