The U.S. introduces strict tax reporting rules for transactions over $10,000, while the SEC struggles with a backlog of paperwork for upcoming spot Bitcoin ETFs. Meanwhile, Michael Saylor sells MicroStrategy shares to increase his bitcoin holdings, and CNBC’s Jim Cramer praises Bitcoin as a “technological marvel.”
New US Crypto Tax Rule Takes Effect: Transactions of $10,000 or More Must Be Reported to IRS Within 15 Days
Starting January 1, 2024, a new U.S. tax rule requires individuals and businesses to report cryptocurrency transactions over $10,000 to the IRS within 15 days, detailing source information and transaction specifics. Failure to comply could result in felony charges. This rule, part of the Infrastructure Investment and Jobs Act, applies to both individuals and businesses involved in crypto-related trade or business, but the lack of clear Treasury guidance on compliance details raises concerns among entities like Coin Center, a crypto policy advocacy group.
SEC Still Processing Spot Bitcoin ETF Paperwork, Report
Expectations are high for the U.S. Securities and Exchange Commission (SEC) to approve spot bitcoin ETFs, with speculation about an announcement either later this week or early next week, as the January 10 deadline approaches. Despite rising bitcoin prices in anticipation, sources suggest the SEC still has significant paperwork to review. While some reports indicate possible early-week approvals, others, citing the volume of paperwork, lean towards a decision closer to the deadline. The market is watching closely for the SEC’s decision, which could include multiple ETF approvals.
Michael Saylor Selling $216 Million of MicroStrategy’s Shares, Plans to Buy More Bitcoin
Michael Saylor, CEO of MicroStrategy, plans to sell 315,000 shares of his company’s stock, valued at approximately $216 million, according to a SEC filing. This move is part of a prearranged trading plan involving the sale of up to 400,000 shares. Saylor intends to use some of the proceeds from this sale to purchase more Bitcoin for his personal holdings. The decision to exercise his stock option, expiring in April 2024, also reflects personal financial obligations. As of December 2023, Saylor personally owned 17,732 BTC, while MicroStrategy reported holdings of 189,150 bitcoin.
Jim Cramer: Bitcoin Can’t Be Killed — a Technological Marvel Is Here to Stay
Jim Cramer, known for his previously mixed stance on Bitcoin, has recently made bullish statements about the cryptocurrency. During a CNBC segment, Cramer, a former hedge fund manager and co-founder of Thestreet.com, recognized Bitcoin as a “technological marvel” and emphasized its resilience, stating, “This thing, you can’t kill it.” Cramer, who once advocated for Bitcoin and later shifted to skepticism due to ransomware concerns and regulatory issues, notably advised against crypto investment in December 2022 but now acknowledges Bitcoin’s staying power amid discussions on the potential approval of spot Bitcoin ETFs by the SEC.
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