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Senators are joining in a bi-partisan effort to exempt taxes on crypto transactions of less than $50.
Sen. Patrick Toomey (R-Pa.) joined with Kyrsten Sinema (D-Ariz.) to push the exemption from tax requirements for crypto users making small investments or purchases. Their Virtual Currency Tax Fairness Act matches a similar effort previously introduced in the House of Representatives.
The legislation aims to make crypto trading and purchasing available to all Americans and help jumpstart the economy.
The IRS has stood firm on crypto transactions so far, but the bill would make it legal for individuals to not declare small transactions.
“When you sell virtual currency, you must recognize any capital gain or loss on the sale,” the IRS website states.
The Securities Exchange (SEC) is reportedly probing the cryptocurrency exchange platform Coinbase for offering unregistered securities.
U.S. Securities and Exchange Commission is scrutinizing whether the company illegitimately let users trade digital assets that haven’t been registered as securities, according to CNBC.
The news comes after an ex-Coinbase product manager was charged Thursday, along with two other individuals, in a first-of-its-kind crypto insider trading case.
Coinbase shares were down 15% Tuesday, and the platform has lost 77% of its value this year.
Ethereum’s upward momentum has reversed. The share price fell below $1,400 Tuesday, extending Monday’s 10% slide. Ethereuem was previously on a 6 day trading range between $1,460 and $1,660.
Last week’s rally is attributed in part to the Ethereum blockchain’s upcoming transition to a proof-of-stake consensus algorithm. However, the anticipated interest rate hike by the U.S. Federal Reserve seems to have stopped it in its tracks.
“A pullback in ether may find initial support at the 50-day MA (~$1,293), but we expect an eventual retest of interim support ($1,000) on the next down leg,” Katie Stockton, founder and managing partner of Fairlead Strategies, wrote in a research note published Monday, noting short-term signs of investor exhaustion.
Stablecoin Tether, which ties its value to the U.S. dollar, has stabilized for the first time in over two months.
Tether is the largest stablecoin by volume, helping it to weather the crypto winter better than similar cryptos such as Terra, which collapsed May 12.
Tether’s market capitalization has declined by $16 billion to $65 billion in two months, a sign of large redemptions by holders. This means that the company behind USDT, Tether Ltd., honored billions of dollars’ worth of redemptions following UST’s meltdown, according to CoinDesk.
With the initial stress test passed, surviving stablecoins may have a future in the crypto community.
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