Riding The Wave News Summary 205

SEC will reject all bitcoin spot ETFs in January, says Matrixport analyst, IRS rules require reporting data from $10k crypto transactions in 2024, & more.

Jan 03, 2024

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Etoro recently released an article on Bitcoin for 2024 with some great information, which you can check out here: https://www.etoro.com/en-us/news-and-analysis/etoro-updates/what-is-your-bitcoin-outlook-for-2024

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SEC will reject all bitcoin spot ETFs in January, says Matrixport analyst

In contrast to broad market consensus, Matrixport analyst Markus Thielen anticipates that the Securities and Exchange Commission will decline all bitcoin spot ETF proposals in January.
Despite the frequent meetings and updated S-1 prospectuses between filers and the SEC in recent weeks, Thielen pointed out in a report that these applications still fall short of a critical requirement that must be met before the SEC can approve them.
Thielen based his perspective on the political dynamics and compliance concerns. The analyst argued that while an ETF would help enable crypto to take off in the U.S., the SEC chair still sees the industry as needing more stringent compliance.
“SEC Chair Gensler is not embracing crypto in the U.S., and it might even be a very long shot to expect that he would vote to approve bitcoin spot ETFs,” Thielen wrote. “This might be fulfilled by Q2 2024, but we expect the SEC to reject all proposals in January.”
"There's been far too much fraud and bad actors in the crypto field," Gensler told CNBC last month. "There's a lot of non-compliance, not only with the securities laws, but other laws around anti-money laundering and protecting the public against bad actors there," the SEC chair added.

If the bitcoin spot ETF applications are denied by the SEC this month, Thielen expects to see cascading liquidations as billions of dollars in perpetual long bitcoin futures unwind. This could lead to bitcoin’s price dropping sharply by around 20%, back into the $36,000 to $38,000 range, he said.

Full Article

IRS rules require reporting data from $10k crypto transactions in 2024

Aspects of the infrastructure bill signed into law by United States President Joe Biden are now in effect — including provisions requiring many digital asset transactions worth more than $10,000 to be reported to the Internal Revenue Service (IRS).
The bipartisan infrastructure bill, passed by Congress and signed into law by President Biden in 2021, expanded the requirements for brokers to have many crypto exchanges and custodians report crypto transactions greater than $10,000 to the IRS. Following the bill’s passage, many lawmakers suggested additional legislation to “fix” the reporting requirement, claiming that the information required from brokers would be difficult or impossible to collect.
The bill mandates crypto brokers to report personal information on transactions to the IRS, including the sender’s name, address and social security number, within 15 days. The requirements, aimed at reducing the size of the tax gap in the United States, were initially scheduled to take effect in January 2023, having companies send reports to the IRS in 2024.
According to Coin Center executive director Jerry Brito, many users “will find it difficult to comply” with the reporting requirements without guidance from the IRS. He speculated that filers would attempt to comply with the law but risked being found guilty of a felony.
“If a miner or validator receives block rewards in excess of $10,000, whose name, address, and Social Security number do they report?” said Brito. “If you engage in an on-chain decentralized exchange of crypto for crypto and you therefore receive $10,000 in cryptocurrency, who do you report? And by what standard should you measure whether an amount of a particular cryptocurrency is equivalent to more than $10,000?”

Full Article

Fidelity Bitcoin ETF Set to Trade on CBOE—But No Word From SEC

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