Biden's new tax policy has caused volatility in the crypto market. This article explores the latest developments regarding XRP and BTC, the SEC vs. Ripple case, and the impact of the new tax.
Biden's Tax Policy and Its Impact
On December 27, the Biden administration finalized a controversial crypto broker tax reporting rule targeting DeFi, NFTs, and stablecoins. According to legal experts, the rule requires trading platforms to track and report user activities for all digital asset sales by 2027. The move has sparked legal and Congressional challenges, raising concerns over its impact on the crypto industry.
SEC vs. Ripple: XRP's Future
The SEC's case against Ripple is approaching a critical deadline, with the agency’s appeal potentially reshaping XRP’s regulatory classification. If the SEC overturns previous rulings, XRP may face delistings from major exchanges, dampening demand. On the other hand, a withdrawal of the appeal under a pro-crypto administration could propel XRP closer to its 2018 all-time high of $3.55.
Current BTC Trends and Outlook
Bitcoin (BTC) slipped below the $95k level on December 27, weighed down by ETF outflows and Biden’s tax policy. Spot ETF market volatility and concerns over Fed rate decisions have further dampened BTC’s price. Corporate adoption, however, remains a bright spot, with new ETFs like the Bitcoin Standard Corporations ETF showcasing the growing role of BTC in treasury reserves.
As 2024 ends, XRP and BTC stand at pivotal moments. Regulatory developments, including the SEC’s Ripple case and ETF market activity, will shape their trajectories. For investors, staying informed on these critical updates is key to navigating the volatile crypto market.
