“At the moment most people are pretty hesitant to spend crypto like they would their dollars knowing that it’s going to be pretty complicated when tax season comes around.” – 02:12
Gareth Jenkinson, Head of Multimedia at Cointelegraph, joins Remy Blaire to discuss the latest developments in the cryptocurrency market.
The segment opens with Remy providing an overview of the current market conditions, noting that Bitcoin is trading below $110,000 and Ethereum (ETH) is just under the $4,000 mark. She highlights an important upcoming event: the Senate Finance Committee’s hearing on crypto taxation scheduled for next Wednesday. Remy asks Gareth what the industry is specifically looking for from this hearing. Gareth explains that the primary concern is gaining clarity on how cryptocurrencies will be taxed in the United States. He elaborates on the similarities between cryptocurrency taxation and that of stocks and shares, emphasizing the need for legislation regarding de minimis tax payments. This legislation would allow users to make small purchases with cryptocurrencies—such as buying a cup of coffee—without incurring capital gains tax, which could encourage broader adoption of digital currencies.
The conversation then shifts to Tether, a significant player in the stablecoin market. Remy inquires about Tether’s recent fundraising efforts, and Gareth shares insights from Tether’s CEO, who has stated that the company is not pursuing an IPO but is instead looking to raise between $15 and $20 billion from private investors. This fundraising round could value Tether at an astonishing $500 billion, placing it in the same league as major companies like ChatGPT and SpaceX, despite having fewer than 100 employees. Gareth explains that Tether’s business model, which involves holding reserves in U.S. Treasury bills, has proven to be highly profitable, generating approximately $5 billion in interest quarterly. He expresses surprise that Tether is not seeking to raise even more capital, given the immense interest from investors.