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Blockchain Association urges Congress to modernize crypto tax rules

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Blockchain Association urges Congress to modernize crypto tax rules

The Blockchain Association has proposed a set of crypto tax reforms after meeting with House Ways and Means Committee offices on Capitol Hill.

Summary

  • The Blockchain Association has proposed crypto tax reforms in a meeting with House Ways and Means Committee offices.
  • The group called for staking rewards to be taxed only upon sale, alongside privacy-focused reporting rules and broker clarity for non-custodial platforms, among others.

“There is real bipartisan opportunity to modernize digital asset tax policy in 2026. We look forward to continued engagement with lawmakers to deliver clear, workable rules that support compliance and strengthen U.S. competitiveness,” the Blockchain Association wrote in a Tuesday X post.

In its Digital Asset Tax Principles, released the same day, the crypto advocacy group lobbied lawmakers for a “de minimis exemption for small digital asset transactions” and for treating stablecoins as cash for tax purposes, saying routine use should not create disproportionate tax reporting obligations.

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The Blockchain Association also said that reporting rules should safeguard taxpayer privacy while still enabling effective enforcement against illicit activities. Further, it added that developers and non-custodial platforms should not be treated as brokers.

The group also contends that taxing staking rewards “upon creation” can create liquidity and valuation challenges, and proposed treating them as self-created property taxable only upon sale or disposition.

Other key proposals included extending wash sale rules to digital assets and introducing a statutory safe harbor for foreign persons trading on U.S. exchanges.

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As previously reported by crypto.news, last year Senator Cynthia Lummis introduced a standalone bill that pushed for a de minimis exemption on crypto transactions under $300 alongside a $5,000 annual cap on total tax-free activity.

The senator’s bill also targeted the issue of double taxation that digital asset holders face during the staking and mining process, where rewards can be taxed at the time of receipt and again upon sale.

However, it was met with strong opposition from Democratic Senator Elizabeth Warren, who said at the time that the proposal would allow crypto investors to avoid reporting income on certain transactions and create what she described as a loophole in the tax code.

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Crypto World

Cardano (ADA) Soars 10% Daily, Bitcoin (BTC) Recovery Stopped at $70K: Market Watch

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BTCUSD Feb 26. Source: TradingView


DOT, STABLE, and UNI have rocketed the most in the past day, with gains of over 20% in some instances.

After dumping to a new local bottom of $62,500, bitcoin went on a tear yesterday, surging by over eight grand to $70,000, where it faced immediate selling pressure.

Many altcoins have produced even more impressive gains over the past day, with ETH reclaiming the $2,000 level, and ADA surging by double digits to almost $0.30.

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BTC Tapped $70K

After last week’s rejection at $70,000, bitcoin spiraled down for a few consecutive days and dipped to $65,600 last Thursday. It reacted well to this decline and jumped toward $69,000 during the weekend, where it was stopped again after the latest developments on the tariff front, prompted by the US Supreme Court and the subsequent Trump actions.

Although BTC remained relatively still at first, it plunged when the legacy futures markets opened. In just over an hour, the asset plummeted to $64,400 before it rebounded to $66,400.

That appeared to be a dead-cat bounce, and BTC quickly began to lose value again. This time, the nosedive drove it to a three-week lot of $62,500. The bulls finally stepped up decisively at this point and prevented another leg down. Just the opposite; bitcoin exploded out of the gate and soared to $70,000 for the first time in over a week.

It couldn’t break above that level, and has declined by two grand since. However, it’s still 4.5% up on the day, and its market cap has returned to $1.360 trillion on CG. Its dominance over the alts remains inches above 56%.

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BTCUSD Feb 26. Source: TradingView
BTCUSD Feb 26. Source: TradingView

Alts Rocket

Ethereum, which some analysts believe might have already bottomed out, is back above $2,000 after an impressive 8% daily surge. XRP has reclaimed the $1.40 line after a 5.5% pump. SOL, DOGE, CC, BNB, and HYPE have marked similar gains, while LINK has soared by 9%.

ADA has outperformed the rest of the larger-cap alts. A 10% surge has driven it to almost $0.30. DOT is today’s top performer, having soared by 24% to roughly $1.60. STABLE, UNI, and NEAR follow suit.

The total crypto market cap has recovered $120 billion since the recent low and is up to $2.425 trillion on CG.

Cryptocurrency Market Overview Feb 26. Source: QuantifyCrypto
Cryptocurrency Market Overview Feb 26. Source: QuantifyCrypto
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Can XRP Price Recover in March?

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Can XRP Price Recover in March?

A convincing bullish reversal setup and hints of easing whale distribution may push the price of XRP up by 20% or more in March.

XRP (XRP) is down more than 50% since October 2025, with five consecutive monthly losses. Can March finally snap the bearish streak?

Key takeaways:

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  • XRP’s double-bottom setup targets 20% upside in March.

  • Whale selling has cooled and larger-holder balances are rising, improving the bullish outlook.

Double bottom hints at 20% XRP rally

As of Thursday, XRP was forming what appeared to be a double bottom pattern after holding the $1.30–$1.35 support area twice in February.

A double bottom forms when the price hits the same floor twice an rebounds. It resolves on a breakout above the neckline, often setting an upside target equal to the pattern’s height from the breakout level.

XRP/USD daily chart. Source: TradingView

For XRP, the neckline sits near $1.50. A decisive break above it increases the odds of XRP rising to $1.68–$1.70 by March, roughly 20% above the current levels.

XRP whale flows improve recovery chances

XRP net flows are shrinking toward neutral levels after spending months in distribution phase, according to data resource CryptoQuant.

As of Thursday, the total whale flow on a 90-day moving average was around -3.29 million XRP compared to roughly -33.50 million XRP in December. This shows that whale outflows have substantially decreased despite the 25% price drop in the same period.

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XRPL whale flow 90-day moving average vs. price. Source: CryptoQuant

At the same time, XRP supply held by wallets with at least 1,000 tokens has resumed its upward trajectory in recent weeks, suggesting that whales have stopped selling and may be re-accumulating near current lows.

XRP supply held by addresses with at least 1,000 token balance. Source: Glassnode

A similar easing in whale flows occurred in April 2025, which preceded an XRP rebound of over 50%.

Therefore, a clean flip above zero would signal net accumulation and strengthen the case for XRP to follow through toward its $1.68–$1.70 double-bottom target in March.

What could spoil the bullish XRP scenario?

The $1.68–$1.70 area is above XRP’s 50-day exponential moving average (50-day EMA, the red trendline), a level the price has failed to break throughout February.

XRP/USD daily price chart. Source: TradingView

A pullback from the 50-day EMA could keep XRP from hitting its double-bottom target. That may further trigger a bear pennant scenario with the price target at around $1, down about 30% from the current price levels.

Related: $209B exited altcoins over the last 13 months: Did traders rotate into Bitcoin?

Macro risks are another headwind. The return of the AI-driven risk-off trade and US–Iran tensions can drain liquidity from high-beta assets, making it harder for XRP to sustain a breakout even if the chart setup currently looks promising.

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