US Crypto Industry Undergoes Massive Correction As Biden Plans To Increase CGT

Even though the crypto market was expecting bullish, however, there was a massive correction witnessed in the overall cryptocurrencies. None of the digital assets, nor even the Bitcoin, were able to gain any increase as the progress was jeopardized because of the news which suggested that US President Biden has planned to increase taxes under Capital Gain Tax (CGT).

A task force of Central Bank Digital Currency (CBDC) has been established jointly by UK’s Central Bank and Treasury. The purpose of constituting the task force is to see how UK can develop its CBDC in order to capitalize from the crypto industry.

Later on, a press release was published by the Bank of England in which the bank suggested that it will soon be able to launch its official CBDC. This CBDC will be used for serving the household as well as business intended purposes as well, suggested in the press release.

The creation of CBDC by the UK as well as many other prominent crypto events indicated a bullish signal and it was expected that a surge will be inevitable in the crypto industry. However, all the expectations went in vain when news completely jeopardized the crypto market’s progress which resultantly vanished the bullish signal.

IOHK’s CEO and Co-Founder, Charles Hoskinson, suggested that the coming 3 to 4 months are very crucial in the US with regard to the crypto industry. He suggested that he thinks that Biden is all geared up for introducing regulations covering Bitcoin and other cryptocurrencies.

He also referred to a news report which was covered by top US news channel Fox Business. The report suggested that the crypto regulations have already been prepared and their issuance is due for the time being. However, the project is still under development and will not be implemented soon until Biden Administration thinks fit that the time has come.

It was found out that the news item was in fact provided to Fox Business by its senior journalist namely Charles Gasparino. Gasparino was of the view that he was told by friends who are working closely with the Biden Administration that crypto regulation is in its early development stages.

He added further that there is a crypto-related debate in almost every session between Biden officials. However, he suggested that the end impetus will come from the newly appointed Chairman of the Securities & Commission of the US, Gensler. According to Gasparino, Gensler is eagerly awaiting to receive instructions from the higher end to issue crypto regulations.

Meanwhile, another argument was raised by Hoskinson in which he explained why he thinks that there will be crypto regulation soon. He argued that Biden has planned to increase CGT over the country’s taxpayers. Any taxpayer whose income is above US$ 1 Million will be required to pay increased CGT. Because in various parts of the world, cryptocurrencies are taxed under CGT, it is likely that Biden also aims to indirectly regulate crypto.