Biden’s Tax Rule Fuels Crypto Volatility—Impacts XRP and BTC
On December 27, 2024, the Biden administration finalized a crypto broker tax reporting rule, mandating that decentralized finance (DeFi) platforms and other crypto entities report user activities to the IRS starting in 2027. This move aims to enhance tax compliance but has introduced volatility in the cryptocurrency market, notably affecting XRP and Bitcoin.
The Securities and Exchange Commission (SEC) is approaching a critical deadline in its case against Ripple, the company behind XRP. An appeal by the SEC could lead to XRP being delisted from major exchanges, while withdrawing the case might boost investor confidence and demand for $XRP
Additionally, $BTC Bitcoin's price has dipped below $95,000, influenced by factors including ETF outflows, the new tax regulations, and uncertainties surrounding Federal Reserve rate policies. These developments underscore the intricate relationship between regulatory actions and cryptocurrency market dynamics.
