In this episode of the Crypto Daily Download, we dive into the latest developments in the cryptocurrency and tech sectors. We discuss the proposed billionaire tax on unrealized gains in California, backed by the Service Employees International Union and United Healthcare Workers West. This one-time 5% tax on Californians with assets exceeding $1 billion aims to fund healthcare and public services, but critics warn it could lead to capital flight and compel wealthy individuals to sell assets to cover tax bills. Galaxy Digital CEO Mike Novogratz shares insights on the future of XRP, emphasizing the importance of maintaining its community narrative as competition grows from tokenized real-world assets. We also explore the impact of Bitcoin’s recent 30% decline from its all-time high, which is driving increased tax-loss harvesting among cryptocurrency holders. This practice allows investors to sell assets at a loss to offset taxable income, with unique advantages for crypto transactions. Lastly, we cover the early release of Caroline Ellison, the former associate of FTX’s Sam Bankman-Fried, who is set to be freed from federal prison after serving 15 months of her two-year sentence. Jane King with the latest from the NYSE.
Get the latest news and updates on FINTECH.TV
Thanks JD.
Here's a look at your crypto daily download.
Crypto and tech leaders warn the proposed billionaire tax on unrealized gains could accelerate capital flight and undermine California's innovation economy.
The ballot measure backed by Service Employees International Union, United Healthcare Workers West, seeks to levy a one-time 5% tax on the network of Californians, with assets exceeding $1 billion.
Dollars with the proceeds directed primarily toward healthcare and public services, because the tax would apply in part to unrealized gains, increases in asset value that have not been sold.
Critics contend it could compel wealthy individuals to sell stock or portions of their business just to cover the tax bill, even when no cash has been realized.
Galaxy Digital CEO Mike Novogratz warned that XRP's value will increasingly depend.
On whether it can keep its community narrative intact as markets shift toward tokens that behave more like real businesses.
Novograss argues that as more tokenized real world assets come on chain, networks that rely mostly on community momentum could face tougher competition, and Bitcoin's 30% slide from its all-time high is creating conditions that are likely driving more tax loss harvesting in digital assets than in previous years.
The Of tax loss harvesting allows an investor to sell an asset at a loss and use that loss to reduce their taxable income, with losses offsetting capital gains dollar for dollar.
Cryptocurrency holders can sell and repurchase in the same session without triggering the IRS wash sale rule, making the harvest and rebuy trade easier to execute immediately.
Well, Caroline Ellison, the ex of FTX crypto crook Sam Bankman.
Reed, who later turned on him, is due to get an early release from federal prison after serving just 15 months of a two-year sentence.
That's according to the US Bureau of Prisons records, and they say that Ellison is expected to be freed on January 21st.
FTX CEO Sam Bankman Fried was convicted in the crypto fraud in March of 2024 and hit with a 25-year prison term.
And that is the latest crypto daily download headlines.