John Deaton Questions Tax Policies for U.S. Crypto Projects with Global Ties

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  • John Deaton questions U.S. crypto tax policies for projects with global operations like Solana and Tezos.
  • Proposed tax exemptions may boost U.S.-based firms like Ripple and crypto miners like Riot Platforms.
  • Clear tax policies could drive broader corporate adoption of cryptocurrencies as treasury reserve assets.

Pro-XRP lawyer John Deaton has expressed concerns about U.S. tax policies for cryptocurrency projects. He highlighted uncertainties surrounding the proposed zero capital gains tax. Deaton focused on how these policies apply to projects with global operations.

Uncertainties Around Tax Exemptions for Crypto Projects

John Deaton questioned if hybrid projects like Solana and Tezos qualify as U.S.-based entities. Solana operates in the U.S. but is governed by a Swiss foundation. Tezos, developed in the U.S., is also controlled by a foundation in Switzerland.

Deaton also pointed to projects like XRP, XLM, and HBAR that might face fewer jurisdictional challenges. He suggested these projects are likely to meet tax exemption requirements. Their simpler structures could position them to benefit from the proposed policies.

Benefits for U.S.-Based Firms and Mining Companies

Deaton explained how U.S. firms like Ripple and ConsenSys might gain from the proposed tax exemptions. He believes these policies could encourage them to expand their cryptocurrency holdings. This could make digital assets more attractive as corporate treasury reserves.

U.S.-based mining companies like Riot Platforms and Marathon Digital Holdings may also qualify for tax exemptions. However, Deaton noted challenges for foreign miners like Hut 8, which operate in the U.S. He stressed the need for clarity on whether such companies would benefit.

Tax Policies and Corporate Crypto Adoption

Deaton highlighted how tax incentives could influence corporate strategies to adopt cryptocurrencies as reserve assets. Companies like MicroStrategy, known for holding Bitcoin, could benefit from these exemptions. This might encourage other firms to consider similar treasury strategies.

He emphasized the importance of clear rules for companies holding assets like XRP and HBAR. Such policies could drive broader crypto adoption across industries. This would make cryptocurrencies an integral part of financial strategies.

Regulatory Concerns and Future Directions

Deaton criticized past regulatory actions by the SEC, describing them as harmful to innovation. He highlighted the need for reforms to support growth in the cryptocurrency sector. Deaton also urged the White House Crypto Council to prioritize clearer tax policies.

He identified key areas for improvement, including crypto taxation and establishing a Bitcoin reserve. These efforts, he believes, could ensure fair treatment for the industry. Clearer regulations are essential to addressing the complexities of the crypto market.

The post John Deaton Questions Tax Policies for U.S. Crypto Projects with Global Ties appeared first on Cryptonewsland.

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