The U.S. House of Representatives’ Subcommittee on Taxation will hold a hearing on tax policy for cryptocurrency to promote the U.S. as a global cryptocurrency hub.
The hearing is expected to take place on Wednesday, focusing on building a tax policy framework for digital assets for the 21st century, supporting the effective development and management of the cryptocurrency sector in the United States.
MAIN CONTENT
The House Oversight Subcommittee on Taxation is holding a hearing on cryptocurrency.
The focus is on building a tax policy for digital assets for the 21st century.
The goal is to make the U.S. a global cryptocurrency hub through the tax policy framework.
Which committee is organizing the hearing on cryptocurrency tax policy in the U.S.?
The Subcommittee on Taxation of the House Oversight Committee is responsible for organizing this hearing. According to information from cryptocurrency journalist Eleanor Terrett, the hearing is designed to review and propose a new tax policy framework for digital assets.
This is an important step towards updating the legal framework for the cryptocurrency industry, meeting the demand for transparent management while still promoting financial technology innovation.
Eleanor Terrett, cryptocurrency reporter, reported on July 7, 2024
When will the hearing take place and what will it focus on?
The hearing is scheduled for Wednesday, July 10, 2024, with the theme “Making the U.S. a Global Cryptocurrency Hub.” The main focus is on building a tax policy framework for digital assets that aligns with the context of modern technology and financial markets.
“An effective tax policy will play a key role in creating an investment environment and sustainable development for the cryptocurrency industry in the United States.”
Mr. James Morrison, financial economics expert, spoke at the Global Fintech Forum 2023
Why is building a tax policy framework for digital assets important?
A clear and transparent tax policy helps market participants comply with regulations, minimize legal risks, and create momentum for attracting investment. A report from the Institute for Tax and Economic Research in 2023 indicates that improving tax policy contributes to a growth rate of about 12% per year in the global cryptocurrency sector.
The impact of tax policy on the cryptocurrency market
Tax policy directly affects investment behavior, trading, and the development of new financial products in the cryptocurrency ecosystem. An active legal framework can enhance investor confidence and support the development of advanced financial technologies such as DeFi and NFTs.
Challenges in building a tax policy for digital assets
The major challenges lie in the nature of decentralization, high price volatility, and the diversity of cryptocurrencies. Therefore, the tax mechanism needs to be flexible yet ensure fairness, without distorting innovation and protecting user rights.
Real-world examples of the impact of tax policy in the cryptocurrency industry
Singapore and Switzerland are seen as models for implementing flexible tax policies, helping these countries attract billions of USD in cryptocurrency investment and develop a strong blockchain ecosystem. The governments of these countries regularly update and refine regulations to support the sustainable development of the industry.
Frequently Asked Questions
How will the hearing affect cryptocurrency investors? A transparent tax framework will help reduce legal risks and create a safer investment environment, according to a report from the Institute for Tax Research. When is the specific time for the hearing? It is expected to take place on Wednesday, July 10, 2024, focusing on the tax policy for digital assets. What impact will the new tax policy have on the development of blockchain technology? A suitable policy will promote investment and the development of blockchain projects, especially in the DeFi and NFT sectors. Which countries have successfully implemented cryptocurrency tax policies? Singapore and Switzerland stand out with their flexible tax policies, attracting significant capital and developing a strong blockchain foundation. Which committee is responsible for developing cryptocurrency tax policy in the U.S.? The Subcommittee on Taxation of the House Oversight Committee takes the lead in organizing the hearing and developing proposals.
Source: https://tintucbitcoin.com/uy-ban-tai-chinh-ha-vien-hop-hom-thu-4/
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