Welcome to another edition of Crypto NFT Today! If you like cryptocurrencies, NFTs and emotional rollercoasters, you’ve come to the right place.
Are you ready for the crunch? Let’s start.
Senators Propose Bill to Exempt Taxes on Small Crypto Transactions
Senators join a bipartisan effort to exempt taxes on crypto transactions less than $50.
Sen. Patrick Toomey (R-Pa.) has partnered with Kyrsten Sinema (D-Ariz.) to advance tax exemptions for crypto users who make small investments or purchases. Their Virtual Currency Tax Fairness Act parallels similar efforts previously introduced in the House of Representatives.
The legislation aims to make crypto trading and buying accessible to all Americans and boost the economy.
The IRS has hitherto lobbied on crypto transactions, but the bill would make it legal for individuals not to declare small transactions.
“If you sell virtual currencies, you must recognize any capital gains or losses from the sale,” the IRS website states.
SEC investigates Coinbase for unregistered securities trading
The Securities Exchange (SEC) is reportedly investigating cryptocurrency exchange Coinbase for offering unregistered securities.
According to CNBC, the US Securities and Exchange Commission is investigating whether the company will allow users to trade digital assets that have not been registered as securities.
The news comes after a former Coinbase product manager was indicted along with two others in a unique crypto insider trading case on Thursday.
Coinbase shares are down 15% on Tuesday, and the platform has lost 77% of its value this year.
The Ethereum rally stopped in its tracks
Ethereum’s bullish momentum has reversed. The stock price fell below $1,400 on Tuesday, extending Monday’s 10% slide. Ethereuem 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 rate hike by the US Federal Reserve seems to have stopped them.
“A pullback in Ether may find initial support at the 50-day ma (~$1,293), but we anticipate an eventual retest of the preliminary support ($1,000) on the next move down,” said Katie Stockton, Founder and Managing Partner of Fairlead Strategies. wrote in a research note published on Monday, noting near-term signs of investor exhaustion.
Tether is stabilizing for the first time since the beginning of the crypt winter
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 cap has fallen by $16 billion to $65 billion in two months, a sign of large redemptions by holders. This means the company behind USDT, Tether Ltd., has honored billions of dollars worth of redemptions following the collapse of UST, according to CoinDesk.
If the initial stress test is passed, surviving stablecoins could have a future in the crypto community.