First, let me explain this proposal: Simply put, it is a regulated stablecoin with a value between $0.99 and $1.01, which means no capital gains tax when trading; furthermore, the rewards for staking and mining can be taxed later. This is indeed a significant advantage for the crypto industry, as taxation has always been a major issue troubling the sector. If this proposal is approved, it will reduce trading costs for investors and attract more funds into the market.
However, there are three pitfalls that everyone must be aware of: The first pitfall is that only 'regulated stablecoins' are tax-exempt; unregulated stablecoins do not qualify. Many retail investors do not know how to distinguish whether a stablecoin is regulated, and blindly trade stablecoins from smaller platforms, which could result in losing everything if the platform goes bankrupt.
The second pit, the risk of frequent trading of stablecoin arbitrage. Although it is tax-free, the spread and transaction fees for stablecoin trading still exist. Frequent trading not only fails to make money but may also lead to losses due to market fluctuations. Additionally, the competition in the stablecoin market is fierce, and many stablecoins have very low interest rates, resulting in very little arbitrage space.
The third pit, the proposal has not yet been approved, and there is uncertainty. Right now, it is just the members of the House of Representatives drafting the bill, and it will go through several stages such as voting and Senate review; it is uncertain whether it will pass and when it will pass. Many major players will use this news to drive up prices, and if the news does not meet expectations when it materializes, they will take the opportunity to sell off and trap retail investors.
As for the market trend, in my personal judgment, this news will temporarily boost the coins related to stablecoin concepts, such as platform coins that issue stablecoins and DeFi projects related to stablecoins. However, since the proposal has not yet been approved, this is merely a market driven by short-term emotions and is hard to sustain. In the medium to long term, if the proposal is approved, it will bring long-term incremental funds to the crypto market, which is beneficial for the entire market; but if the proposal is rejected, the market may see a correction.
Pit avoidance guide: 1. Only focus on the top regulated stablecoins, such as USDT, USDC, and avoid stablecoins from smaller platforms; 2. Do not trade frequently just because it is tax-free; prioritize long-term investments; 3. For coins related to stablecoin concepts, do not chase high prices, wait for a pullback before positioning with a small amount.
I have mentioned before that 2025-2026 will be the year of regulatory implementation in the crypto industry, and policies will become a key factor influencing the market. This tax proposal is just the beginning, and many regulatory policies will be introduced later. If you want to make money in the crypto space, you must closely follow policy directions while avoiding traps set by major players using policy news.@币圈罗盘 In the next article, I will analyze the crypto money laundering case uncovered by the Shenyang police and see how retail investors can avoid being caught up in illegal activities!
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