Eagle Crest Asset Management

June 29, 2024

US Treasury Department Announces Cryptocurrency Tax System for 2025

According to Odaily, the US Treasury Department's Internal Revenue Service (IRS) has announced a cryptocurrency tax system for 2025. The system is designed to establish record-keeping rules for digital asset brokers. However, the rules related to Decentralized Finance (DeFi) and non-custodial wallets have been temporarily shelved. The agency believes that mainstream crypto platforms handling the 'vast majority' of transactions can no longer wait for rules, but other issues require more research and will establish corresponding rules 'later this year'.The newly released tax rules will take effect for transactions from 2025 and require brokers to closely monitor the cost basis of their clients' tokens from 2026. The new rules for cryptocurrency brokers require trading platforms, custodial wallet services, and digital asset exchange platforms to submit disclosures about client asset changes and earnings. These assets will also include stablecoins such as USDT and USDC and high-value Non-Fungible Tokens (NFTs) in very limited circumstances, although the IRS explicitly refuses to resolve the long-standing debate about whether tokens should be considered securities or commodities.Under the new rules, the IRS will not require reporting of most regular stablecoin sales and has set an annual threshold of $600 for NFT earnings, which needs to be reported only if it exceeds this threshold.

June 29, 2024

US Securities and Exchange Commission Files Lawsuit Against Consensys, Developer of MetaMask Wallet

According to Odaily, the US Securities and Exchange Commission (SEC) has filed a lawsuit against Consensys, the company behind the development of the MetaMask wallet. The details surrounding the lawsuit are yet to be disclosed. Consensys is well-known in the digital currency industry for its development of the MetaMask wallet, a popular tool among cryptocurrency enthusiasts. The lawsuit by the SEC marks a significant development in the ongoing scrutiny of digital currency companies by regulatory bodies. Further information regarding the lawsuit and its potential implications for Consensys and the MetaMask wallet will be provided as it becomes available.

June 28, 2024

US Inflation Rate Expectations for June Show a Slight Decrease

According to Odaily, the United States' inflation rate expectations for a one-year period in June have been predicted at 3%, a slight decrease from the previous value of 3.30%. Similarly, the inflation rate expectations for a five to ten-year period in June are also projected at 3%, down from the previous value of 3.10%. These figures indicate a marginal decline in inflation rate expectations, suggesting a potential stabilization in the economic climate. However, these are merely predictions and the actual inflation rates may vary based on various economic factors and market conditions. It is important for investors and economists to keep a close watch on these figures as they can significantly impact financial planning and investment strategies.

June 28, 2024

X Payments Receives Money Transmitter License in 31 US States

According to Odaily, X Payments, a subsidiary of X, has been granted a Money Transmitter license in 31 states across the United States. The states where the license has been approved include Arizona, Arkansas, Colorado, Connecticut, Florida, Georgia, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Virginia, West Virginia, and Wyoming. This development marks a significant milestone for X Payments as it continues to expand its services across the country.

June 28, 2024

Bolivia Lifts Ban on Bitcoin and Other Cryptocurrencies

According to PANews, Bolivia has lifted its ban on Bitcoin and other cryptocurrencies. The prohibition, which was put into effect in December 2020, has now been officially revoked by the Central Bank of Bolivia (BCB) on June 26. The bank has announced that financial institutions are now permitted to engage in cryptocurrency transactions. Despite the fact that cryptocurrencies can now be traded through authorized electronic channels, the Central Bank of Bolivia has issued a reminder to its citizens that cryptocurrencies are not considered legal tender. This means that while they can be used for transactions, they are not recognized as an official currency by the Bolivian government. This move marks a significant shift in Bolivia's stance on cryptocurrencies, which were previously banned due to concerns over their potential use in illegal activities. The lifting of the ban indicates a growing acceptance of digital currencies and could potentially pave the way for further integration of cryptocurrencies into the country's financial system.

June 27, 2024

Court Rules Against SEC in Ripple Case

According to BlockBeats, Ripple's Chief Legal Officer, Stuart Alderoty, announced on June 27 that the court has once again ruled against the Securities and Exchange Commission (SEC). The ruling was due to the SEC's illegal revocation of a proxy advisory firm's rules without adhering to the Administrative Procedure Act. The court pointed out that this illegal act was personally directed by SEC Chairman Gary Gensler. The case is known as 'National Association of Manufacturers v. SEC'.The case states that the SEC's 2020 rules never came into effect and were revoked in November 2021. The revocation process began shortly after the new SEC Chairman, Gary Gensler, took office. In June 2021, Chairman Gensler instructed his team to reconsider the 2020 rules and suspended their enforcement during this period. For more detailed information, refer to the official SEC statement.

June 27, 2024

Digital Asset Bank Custodia Challenges Federal Reserve's Authority In Court

According to Odaily, digital asset bank Custodia Bank has submitted a court summary to the Tenth Circuit Court of Appeals in the United States, challenging the decision of a Wyoming judge to grant the Federal Reserve unrestricted power to reject its master account. Custodia is asking the appellate court to instruct the Wyoming District Court to revoke its decision to reject Custodia's application for a master account and grant it a master account. Caitlin Long, CEO of Custodia, has hired two senior Supreme Court lawyers to defend her company.The lawyers for Custodia argue that the Federal Reserve's power to refuse to open a master account for state-chartered banks undermines the dual banking system, which allows banks to freely choose whether to operate under state or federal charter. They also claim that the Federal Reserve's power to discriminate against state-chartered banks seeking to obtain a master account may violate the Monetary Control Act, which allows state-chartered banks seeking to obtain Federal Reserve services to have fair access.They emphasized the word 'shall' used by Congress in the Monetary Control Act and wrote that 'all services of all Federal Reserve Banks... should be open to non-member deposit institutions', to illustrate that Congress intended all eligible banks to have equal access to the services of the Federal Reserve.In early May, Custodia hoped to operate as an uninsured bank, issuing a stablecoin backed by cash and other assets. However, the Federal Reserve determined that the bank was not entitled to a master account in the Federal Reserve System and rejected its application to join the Federal Reserve System, indicating that the Federal Reserve intends to isolate the payment track from crypto assets. It is reported that a Federal Reserve account allows the holder to transfer reserves directly to another financial institution without another intermediary.

June 26, 2024

Significant Drop In Usage Of India's Central Bank Digital Currency

According to Odaily, insiders involved in the pilot project have reported a significant decrease in the usage of India's Central Bank Digital Currency (CBDC), the digital Rupee. The usage has dropped to one-tenth of its peak in December 2023. Initially, the Reserve Bank of India (RBI) managed to achieve one million daily retail transactions with the digital Rupee by incentivizing banks and allocating part of the wages in digital currency. However, once these incentives ended, the daily transaction volume fell to approximately 100,000, indicating a lack of organic demand. The central bank is currently focusing on testing technology and developing use cases, with no immediate plans for rapid expansion.

June 26, 2024

US SEC Chairman Discusses Cryptocurrency and Securities Law Overlap

According to Odaily, Gary Gensler, the Chairman of the United States Securities and Exchange Commission (SEC), recently spoke about the intersection of cryptocurrency and securities law, the political implications of crypto regulation, and his priorities at the SEC during an interview at the Bloomberg Investment Summit on June 25. Gensler emphasized that there is no inconsistency between crypto securities and existing securities laws. He pointed out that the rules governing securities are clear and can protect investors, ensuring fair, orderly, and efficient markets. Despite this, he believes that many entities within the cryptocurrency field do not comply with these laws. This non-compliance is a key issue that the SEC aims to address through its regulatory oversight. Regarding the growing political significance of the cryptocurrency industry, Gensler stated that his primary responsibility is to protect investors and supervise issuers, ensuring access to fair, orderly, and efficient markets. He added that while others can participate in political discussions, his duty is to maintain the integrity of the capital markets.

June 25, 2024

UBS Economists Reiterate Soft Landing Outlook for US Economy, Expect Fed to Cut Rates in September

According to BlockBeats, on June 25, UBS economists reiterated their outlook for a soft landing of the US economy. They predict that the Federal Reserve will begin to cut interest rates in September and believe that the market may have misjudged the extent of the Fed's future rate cuts.UBS pointed out that although there have been abnormal fluctuations in economic data since the outbreak of the pandemic, certain trends now seem to have been established. The US labor market, which was severely overheated two years ago, has returned to a state close to pre-pandemic levels, driven by strong growth in labor supply.In addition, there are signs of a slowdown in retail sales and inflation. In May, the core CPI, excluding food and energy prices, only rose by 0.16%, marking the smallest increase since August 2021. Although the core inflation rate is showing a downward trend, it is still much higher than pre-pandemic levels.