Cryptocurrency regulation in the United States has once again emerged as a major political issue since the start of the new year. As the federal Congress, state governments, and the judiciary re-evaluate policies and precedents surrounding the cryptocurrency market, investors and businesses alike face uncertainty.
Lawmakers pressuring the SEC, criticizing relaxed regulations as "politically motivated."
Political backlash against deregulation has surfaced recently, with Democratic Representative Maxine Waters calling for a hearing to strengthen oversight of the Securities and Exchange Commission (SEC). She sent a letter to House Financial Services Committee Chairman French Hill, questioning the leadership of SEC Chairman Paul Atkins. In particular, she criticized the decision to back off on crackdowns on Coinbase and Binance as "an unusual and politically distorted move." This trend suggests that cryptocurrency regulation is becoming a serious topic of debate, intertwined with the political landscape under President Trump.
Will California's Billionaire Tax Lead to Capital Shift?
Meanwhile, the state of California has announced plans to put the Billionaire Tax Act on the ballot, slated for implementation in 2026, sparking fierce backlash from the cryptocurrency and tech industries. The bill would impose a one-time 5% tax on those with a net worth exceeding $1 billion (approximately KRW 1.4452 trillion), as well as taxes on unrealized capital gains. Kraken co-founder Jesse Powell has warned that this measure could be "the final straw," and Bitwise CEO Hunter Horsley has also expressed concern, saying the regulation threatens the financial system of private companies. California's tax policy could also impact the geographic relocation of cryptocurrency capital within the United States.
Trump-linked cryptocurrency firm faces controversy over audit eligibility
ALT5 Sigma, a NASDAQ-listed company with ties to President Trump, has been embroiled in a regulatory controversy after it was revealed it hired an unlicensed auditor. After failing to report third-quarter earnings, the company replaced its auditor, and the newly appointed small Texas-based accounting firm's license expired in August. Even though the founder renewed his individual CPA license, the entire firm remains inactive, inevitably damaging its credibility as a publicly traded company subject to heightened disclosure requirements.
SEC Pro-Crypto Officials Leaveโฆ Will a New Regulatory Path Be Opened?
Cicely Ramos, a longtime pro-cryptocurrency figure within the SEC, has retired after 24 years of service. Ramos oversaw the development of seven major cryptocurrency guidelines, including those related to stablecoins, liquid staking, and memecoins, and has championed pragmatic adoption. Following Chairman Paul Atkins' appointment of Jim Moloney as director last September, this appointment signals a shift in the SEC's internal policy landscape.
Class action lawsuit against Mark Cuban dismissed, putting a stop to controversy over celebrity liability.
Meanwhile, a federal court dismissed a lawsuit filed against billionaire investor Mark Cuban and the Dallas Mavericks over losses from Voyager Digital investments, citing lack of jurisdiction. The court found that Cuban's lack of sufficient involvement in Florida made the Florida investors' claims unpersuasive. This ruling reaffirms the high legal hurdles for future investor lawsuits based on the statements of celebrities or other prominent figures.
๐ Market Interpretation
With the possibility of a Trump re-election becoming a reality, Washington's approach to cryptocurrency regulation is becoming increasingly politicized. The SEC's lenient approach could lead to pressure from the opposition, and regional tax changes could lead to capital flight and market restructuring.
๐ก Strategy Points
We will continue to monitor regulatory risks to prepare for Washington policy volatility.
Tax changes in the US could spark an exodus of large cryptocurrency holders, potentially triggering investor exodus.
- Because regulatory approaches may change depending on changes in SEC personnel, it is essential to track policy documents and statements.
๐ Glossary
- 'Unrealized Gains': The value of the assets held has increased, but the profits have not yet been realized because the assets have not been sold.
- 'Jurisdiction': The court's authority to make a judgment on a person or case
๐ก Want to know more? AI-prepared questions for you:
A. This is because the SEC's decision to back off on cracking down on major cryptocurrencies like Coinbase and Binance was seen as a politically biased move. This is particularly true given the growing perception that regulations have been relaxed under President Trump, and the hearings are intended to strengthen SEC oversight.
A. The bill includes a provision to tax the increase in value of assets like Bitcoin that haven't been sold, creating controversy over the fact that taxes must be paid even if the assets aren't actually sold. This could increase the burden on entrepreneurs and long-term investors.
A. Appointing an unauthorized auditor can lead to issues with accounting transparency and regulatory compliance for listed companies, which could lead to a decline in investor confidence and the possibility of additional sanctions.
A. The departure of pro-crypto officials increases the likelihood of a shift in SEC policy. Specifically, under the new Director Moloney, regulations could become more stringent or shift in direction.
A. This means that even if a celebrity promotes a specific cryptocurrency or platform, they cannot be held liable if the court determines that the activity was not directly related to the victim's residence. This could serve as a benchmark for similar lawsuits in the future.
TP AI Precautions
This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.
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