The OBBBA and GENIUS Act, passed through the U.S. Congress, carry potential impacts on the cryptocurrency market by altering taxation and asset management rules.
OBBBA’s Full Bonus Depreciation and Crypto Mining Costs
The OBBBA reinstates 100% bonus depreciation on capital investments until 2030, allowing businesses to fully deduct equipment costs in the year of purchase. This creates advantages for miners who can immediately deduct expenses related to mining equipment, reducing tax liabilities and increasing profitability.
Crypto Taxation: New Rules Bring Relief and Complications
The OBBBA reshapes tax strategies for cryptocurrencies, making life easier for miners and traders. One new initiative postpones taxation on mining and staking income until assets are sold. However, the expansion of wash sale rules may create complications for investors.
GENIUS Act: Clarity for Stablecoins, But New Risks Arise
The GENIUS Act introduces a regulatory framework for stablecoins, requiring full reserves in dollars or Treasuries. This is expected to increase trust in this asset class; however, some experts believe that the anti-monopoly provisions are insufficient, which could lead to dominance by large tech firms in this area.
The OBBBA and GENIUS Act promise to change the rules for crypto investors in the U.S. The new regulatory climate and tax breaks may incentivize investment and market growth, but increased tax liabilities and regulatory uncertainties may also dissuade some investors.
