The IRS has reaffirmed that staking rewards are taxable income upon receipt, rejecting a legal challenge from Joshua and Jessica Jarrett, who argue that these rewards should be treated as property and taxed only upon sale. Their ongoing dispute stems from taxes on Tezos tokens earned in 2019 and 2020, with the couple seeking a legal precedent for the treatment of staking rewards in the U.S. The IRS maintains that block rewards are classified as income based on their fair market value at the time of receipt.
Binance has announced support for BIO Protocol (BIO), a new decentralized science project aimed at advancing biotechnology through collective funding and tokenization. The BIO token will enable holders to access a network of scientific communities and intellectual property, with support for spot trading starting January 3, 2025. BIO is designed to bridge centralized finance and decentralized science, promoting an on-chain scientific economy.
The cryptocurrency market is experiencing significant challenges, with Solana (SOL) facing selling pressure around $184, while Dogecoin (DOGE) struggles to maintain momentum after a 20% drop, now critical at the $0.25 support level. Pepe (PEPE) shows modest gains despite volatility, trading at $0.00001800, with potential resistance at $0.00002371. Overall, the dynamics highlight a shift in trader sentiment and reliance on speculative influences.
Bitcoin's price has fallen below $90,000 amid tightening global liquidity, raising concerns about a potential drop to the $70,000-$80,000 range. The stagnation in the M2 money supply reflects restrictive monetary policies, which have historically correlated with Bitcoin's bearish phases. A bearish technical pattern suggests a possible decline to around $53,100, although key support levels may mitigate drastic drops.
Dogecoin, the leading memecoin, plummeted over 25% amid a broader crypto market selloff, dropping from a three-year high of 48 cents to around 32 cents. Analysts attribute the steep decline to a lack of value buyers and recent economic signals from the Federal Reserve, which prompted investors to offload risky assets. Despite this setback, Dogecoin has surged over 230% this year, fueled by renewed interest following political developments and Elon Musk's influential role in the new administration.
In 2024, the cryptocurrency sector experienced significant growth, with stablecoins emerging as vital tools for enterprise payments and cross-border transactions. Regulatory clarity and technological advancements fostered institutional adoption, bridging the gap between speculative crypto origins and practical applications. As blockchain technology gained traction across industries, it became clear that the crypto ecosystem is maturing, paving the way for mainstream acceptance.
The Longevity Science Foundation (LSF) is urging cryptocurrency investors to make year-end donations to support groundbreaking research in human longevity, emphasizing the tax benefits of donating appreciated assets. Under the leadership of Joshua Herring, LSF aims to advance healthcare through AI-driven diagnostics and personalized treatments, with a current goal to raise $250,000 for Female Fertility & Longevity Research. Recent funding has been directed towards studies at the University of Oxford, focusing on dietary interventions to combat cardiac aging.
The Wall Street Journal has raised concerns about the potential threat of quantum computing to Bitcoin, labeling it a "time bomb" that could compromise its security within a decade. A study suggests that a quantum hack could lead to over $3 trillion in losses across financial markets, with 1.72 million BTC at risk due to exposed public keys. While experts acknowledge the looming threat, they emphasize that there is still time to develop quantum-resistant cryptography to safeguard the crypto industry.
President-elect Donald Trump has appointed Bo Hines as the executive director of the newly formed Presidential Council of Advisers for Digital Assets, aimed at fostering innovation in the cryptocurrency sector. Hines, a former college football player and pro-crypto advocate, expressed his commitment to ensuring the industry's growth and addressing regulatory challenges. This appointment follows Trump's broader strategy to position the U.S. as a leader in digital assets, with key figures like David Sacks and Paul Atkins also taking prominent roles in shaping crypto policies.
Crypto.com has launched an institutional cryptocurrency custody service in the US, named Crypto.com Custody Trust Company, aimed at US institutions and high-net-worth individuals. This move reflects the company's confidence in the North American market and is part of its strategy to enhance its presence in the US and Canada.In December, CEO Kris Marszalek met with US President-elect Donald Trump to discuss crypto policies, coinciding with the company's decision to drop its lawsuit against the SEC, signaling a commitment to collaborate on regulatory frameworks.
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