US proposes tax change on Bitcoin and impacts regulated stablecoins market

U.S. Congress Seeks Bitcoin Fiscal Gap to Boost Regulated Stablecoins

A legislative proposal recently submitted to the U.S. Congress could redefine the taxation of digital assets by eliminating a tax gap widely used by Bitcoin investors.Digital Asset Parity ActBipartisan MembersSteven Horsford e Max MillerThe report proposes to change Section 1091 of the U.S. Tax Code to include so-called “specified assets,” which cover cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).

According to the project, capital gains from Bitcoin transactions could lose current tax benefits, while stablecoins issued by regulated institutions — such as USDC (USD Coin) or Tether (USDT) — would benefit. The measure aims to create a more controlled and secure environment for digital assets, aligned with U.S. financial regulatory policies.

Background: Why does Bitcoin use a tax gap in the US?

Currently, in the United States, Bitcoin and other cryptocurrencies are treated asLong term activeThis means that ifined for more than a year, sales can be taxed at reduced rates compared to short-term capital gains. This classification allows investors to optimize taxes by delaying or reducing the payment of taxes on digital asset sale or exchange operations.

The bill proposes that Bitcoin should be treated as aSpecified Activity, similar to stocks or bonds, losing this advantage.The justification is to bring more regulatory clarity and reduce tax evasion in a market that has moved more than$1 trillionIn 2016, according to data fromSECThe U.S. Securities Commission.

Meanwhile, regulated stablecoins — which should be issued by authorized institutions and follow compliance standards — would be encouraged.The project suggests that transactions involving these assets could maintain or even expand tax benefits, such as the tax exemption on small transactions, as long as within established limits.

Market Response and Possible Impact

The proposal is anDiscussion draftHowever, it has already generated intense discussions between investors, industry companies and regulators.CryptoSlateIt should be noted that the measure can:

• Reduce the attractiveness of Bitcoin as a value reserveIn the short term, stricter taxation can discourage long-term holdings.
• Promote the use of regulated stablecoins, especially those traded in dollars and audited by companies such as Circle (USDC) or Tether (USDT), which already operate in compliance with global regulations.
• Creating a more predictable environmentInstitutional investors prefer assets with lower regulatory risk.

Data fromCoinGeckoThis shows that the daily trading volume of stablecoins already exceeds100 billion dollarsIf the proposal advances, this percentage could rise even further, with stablecoins gaining space over Bitcoin in institutional investor portfolios.

What does this mean for Brazil?

Although U.S. legislation is not directly applicable to Brazil, the move may influence local discussions on cryptocurrency regulation. The country has been discussing a regulatory framework for digital assets for years, with bills under consideration in the National Congress.Stricter regulationcryptocurrencies, especially those with a higher degree of anonymity or decentralization, such as Bitcoin.

For Brazilian investors, the indirect impact can be felt in theVolatility of the MarketIf the measure reduces the demand for Bitcoin in the U.S., the price of the currency could suffer downward pressures, also affecting the Brazilian market, which is one of the largest in terms of crypto trading volume in Latin America.In addition, the valuation of regulated stablecoins can attract more attention from domestic funds and companies to these assets as a lower-risk alternative.

Another important point is theInstitutional Adoptionlarge companies such as theMicroStrategy— who recently interrupted their weekly buying routine of Bitcoin after 13 consecutive weeks —, may reconsider their strategies if taxation in the U.S. becomes less favorable.214 thousand bitcoinsIn its balance sheet (estimated at around $14 billion in March 2024), it is a thermometer of corporate appetite for assets.

Expert Predictions and the Role of Stablecoins

The proposal also echoes predictions of influential figures in the crypto market.YoungHoon Kim, which claims to have the highest IQ in the world (276), has published five predictions for the cryptocurrency market, notably for XRP (XRP).1000% by 2024It is driven by favourable regulations in the United States.

Although Kim’s predictions are considered speculative, they reflect a growing optimism around regulated assets. XRP, for example, is already used in international transactions by financial institutions such as Santander, and a clear regulation could accelerate its adoption. Stablecoins, such as USDC, have gained space as an alternative to payments and transfers, especially in countries with high inflation such as Argentina and Venezuela – cases that arouse interest from Brazilian investors.

Regulation moves forward, but the market needs to adapt

The proposal for the Digital Asset PARITY Act is another step towards a clearer regulatory environment in the US, a country that concentrates the largest players in the crypto market.While a long legislative process is still needed for final approval, the project signals a trend: that digital assets are increasinglyIt will need to be subject to specific rules.by means of taxation, issuance or conformity.

Bitcoin’s valuation can face new challenges, while regulated stablecoins are gaining space as safer options and aligned with the requirements of regulatory bodies. Adapting to this new scenario will be key for those seeking to protect their investments in the long run.

Meanwhile, it is necessary to follow the legislative developments in the U.S. and the reactions of the global market, which, as always, tend to reverberate quickly in Brazil – whether through exchange, legislation or the appetite of investors.