Expect new crypto regulations to follow Bitcoin ETFs
Aside from liquidity, what do institutions bring to crypto? What precisely is their value added? This is an instructive question to ponder, because there is little consensus on what deeper institutional participation means for an industry that is riven with contradictions.
The long-running wait for Bitcoin ETF approval, giving pensions and funds exposure to BTC, may well prove to be a positive catalyst for industry growth. But in focusing on price action, observers are missing out on the real benefit of broadscale institutional adoption. The greatest benefit of deepening institutional adoption may be the regulatory certainty it ushers in.
There are a number of areas where institutional involvement is forcing regulators to give straight answers. Chief among these are taxation and compliance. What trades can a business legally make, how should they be disclosed on its balance sheet, and what steps must it take to report these activities?
Related: Bitcoin ETFs: A $600B tipping point for crypto
Determining what constitutes a taxable event in crypto depends on your dominion. While U.S. traders are required to calculate profit and loss (PnL) on every trade on a decentralized exchange (DEX), perps position, and on-chain event, other countries take a less rigorous approach, while a few don’t bother to tax it at all.
#Bitcoin ETFs will be Delayed until the Final Deadline
The SEC is trying to show that they are not interested and attempting to push the dates until the final deadline, even though both the SEC and BlackRock know the inevitable outcome.
BlackRock's ETF should be the first one… pic.twitter.com/6ZkfUf9WPR
Regardless of where you reside, determining your obligations when buying, selling, and storing digital assets can be
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