Although the official ruled out a “wealth tax,” she acknowledged that it is intended for people with high purchasing power who generate income from their investments in asset markets. In the case of cryptocurrencies, this new tax on unrealized gains could apply, for example, to increases in the price of cryptocurrency. These increases generate profits for investors, especially for those holders who store amounts of them for the long term.
Thus, whether these profits are capitalized through the sale or not, they should pay a tribute to the State if this new bill is approved. In some countries, taxpayers pay taxes on their cryptocurrency operations based on the difference between the purchase price and the sale price. That is, for example, if you buy at $ 5 and sell at $ 9, you will have to pay taxes on those $ 4 difference. This is what happens in Argentina with the income tax.
Two weeks ago, the president of the United States Securities and Exchange Commission (SEC) Gary Gensler confirmed that he has no plans to ban cryptocurrencies, unlike China. The announcement came Tuesday in a four-hour virtual hearing he had with the House Financial Services Committee.
Response from Gensler it was final. Immediately He said “no, that would depend on Congress” and added “our approach is really very different” compared to Chinese policies. He then explained that the government’s goal is to ensure that the crypto industry enters a process of regulation and protection.
Gary Gensler is not the first to show his support for cryptocurrencies as chairman of the United States Securities and Exchange Commission (SEC). He did it last week too Jerome Powell, the president of the Federal Reserve, who stated that he had no intention of banning them. The statement was made at a congressional hearing on September 30.
The United States Congress is open to debate on the regulation of cryptocurrencies. That’s why Democratic Rep. Jim Himes asked Gensler for guidance on his rulemaking ideas. To this, he replied that all crypto exchanges should register with the SEC and that stablecoins would have to increase their protection.
“The $ 125 billion of stablecoins that we have now are like poker chips in a casino. (…) I think if this continues to grow, considering that it has already multiplied by ten in the last year, it can present those general systemic risks, “said Gary Gensler.
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
