Joe Biden

Joe Biden will commission research on regulating and issuing cryptocurrency

Crypto Technology World

A person familiar with the situation said on Monday that US President Joe Biden is set to sign a long-awaited executive order this week asking the Justice Department, Treasury, and other agencies to explore the legal and economic implications of launching a US central bank digital currency.

Cryptocurrencies were designed to be stateless entities that are not bound by the legal frameworks of any state or territory. However, the popularity of cryptocurrencies is reaching unprecedented heights, resulting in more government meddling, condemnation, and cynosure. Several nations and significant technology corporations have now acknowledged that cryptocurrencies will remain a component of the global financial and economic system.

Last year, the White House stated that it was exploring a broad regulation of the cryptocurrency industry, including an executive order, to combat the rising danger of ransomware and other cybercrime.

Biden’s directive establishes a 180-day timetable for a series of papers on “the future of money” and the role of cryptocurrencies in the shifting landscape.

The Biden order, which is expected to be issued on Wednesday, comes amid increased concern about Russian elites’ use of cryptocurrencies to circumvent Western sanctions that have cut Russia off from large portions of the global economy, as well as moves by China and other economies to create their cryptocurrencies.

The Financial Crimes Enforcement Network (FinCEN) cautioned financial institutions on Monday to be on the lookout for any attempts by Russian organisations to avoid sanctions imposed by Washington in response to Moscow’s invasion of Ukraine.

The directive of Joe Biden will direct the Justice Department to investigate whether new legislation is required to create a new currency, with the Federal Trade Commission, the Consumer Financial Protection Bureau, and other agencies studying the impact on consumers.

US Government’s cryptocurrency tax guide for investors and taxpayers

Recently, the government has taken significant steps to guarantee that US citizens are well-informed about the various procedures involved with bitcoin taxation. As a result, it is critical that taxpayers and crypto investors thoroughly grasp and go through the cryptocurrency and Bitcoin tax guide to ensure that they are correct at all times.

Any US resident who indulged with cryptocurrencies during the fiscal year 2021 will now be required to file a tax return with the IRS. Taxpayers in the United States can file their returns before the deadline, however late submissions will result in penalties. In terms of the current situation of cryptocurrencies in the United States, NFTs are currently recognised as properties for tax purposes. This was first controlled by the IRS in a 2014 notice, which also said that the bulk of taxable acts involving digital assets will be subject to capital gains tax treatment, similar to how financial equities are taxed.

In the United States, inflation is at a four-decade high, and the IRS has responded by enacting broad changes that harm crypto investors. Crypto tax restrictions may become even more prevalent in the following year. Tightening reporting laws around DeFi, airdrops, hard forks, and reporting restrictions for privately owned wallets might make this a reality. Taxpayers must file their bitcoin transactions in a variety of complicated methods. To prevent IRS issues, it is now critical to get expert assistance when necessary and to comprehend the ramifications of a single incorrect action.