Crypto NFT Today: The Latest Blockchain, Cryptocurrency and NFT News: July 28 – August 2, 2022
Welcome to another edition of Crypto NFT Today! If you like cryptocurrency, NFTs and riding emotional roller coasters, this is the place to be.
Are you ready for the crunch? Let’s get started.
Senators propose bill to exempt small crypto transactions from tax
Senators are joining a bipartisan effort to exempt taxes on crypto transactions of less than $50.
Sen. Patrick Toomey (R-Pa.) joined with Kyrsten Sinema (D-Ariz.) to push for the exemption from tax requirements for crypto users who make 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 buying accessible to all Americans and help jump-start the economy.
The IRS has been tight-lipped 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 gains or losses on the sale,” the IRS website states.
SEC Probes Coinbase Over Unregistered Securities Trading
The Securities Exchange (SEC) is reportedly investigating cryptocurrency exchange platform Coinbase for offering unregistered securities.
The US Securities and Exchange Commission is investigating whether the company illegitimately allows users to trade digital assets that are not registered as securities, according to CNBC.
The news comes after a former Coinbase product manager was charged Thursday, along with two other people, in a first-of-its-kind crypto insider trading case.
Coinbase shares fell 15% on Tuesday, and the platform has lost 77% of its value this year.
Ethereum rally stopped in its tracks
Ethereum’s upward momentum has reversed. The share price fell below $1,400 on Tuesday, extending Monday’s 10% slide. Ethereum was previously in a 6-day trading range between $1,460 and $1,660.
Last week’s rally is partially attributed to the Ethereum blockchain’s upcoming transition to a proof-of-stake consensus algorithm. However, the expected interest rate hike by the US Federal Reserve appears 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 temporary support ($1,000) on the next leg,” Katie Stockton, founder and managing partner at Fairlead Strategies, wrote in a research note published Monday, noting near-term signs of investor fatigue.
Tether stabilizes for the first time since Crypt Winter began
Stablecoin Tether, which pegs its value to the US dollar, has stabilized for the first time in over two months.
Tether is the largest stablecoin by volume, helping it weather the crypto winter better than similar cryptos like Terra, which collapsed on May 12.
Tether’s market capitalization has fallen by $16 billion to $65 billion in two months, a sign of large redemptions by its owners. This means the company behind USDT, Tether Ltd., honored billions of dollars worth of redemptions after UST’s meltdown, according to CoinDesk.
With the first stress test passed, surviving stablecoins may have a future in the crypto community.
