Seeds of Wisdom RV and Economic Updates Tuesday Evening 1-14-25
Seeds of Wisdom RV and Economic Updates Tuesday Evening 1-14-25
Good Evening Dinar Recaps,
SEC FILES LAWSUIT AGAINST ELON MUSK FOR SECURITIES VIOLATION
Musk's lawyer claims the SEC's lawsuit is mere harassment with no substantial case.
▪️The SEC sued Elon Musk for failing to disclose his Twitter share purchases before acquiring the platform.
▪️Musk's lawyer claims the SEC's lawsuit is baseless and suggests no wrongdoing was committed.
The US SEC has initiated a lawsuit against Elon Musk in federal court, alleging he failed to timely disclose his purchase of more than 5% of Twitter (now X) shares before acquiring the social media platform, according to a Jan. 14 filing first shared by DB News.
The complaint, filed in federal court in Washington, DC, claims Musk’s delayed disclosure after accumulating more than 5% ownership allowed him to “underpay by at least $150 million for shares he purchased after his financial beneficial ownership report was due.”
Musk later acquired Twitter for $44 billion and renamed it X.
Alex Spiro, Musk’s lawyer, dismissed the lawsuit, stating it is “an admission” that the SEC cannot bring an “actual case,” because Musk “has done nothing wrong and everyone sees this sham for what it is.”
“As the SEC retreats and leaves office, the SEC’s multi-year campaign of harassment against Mr. Musk culminated in the filing of a single-count ticky tak complaint against Mr. Musk under Section 13(d) for an alleged administrative failure to file a single form – an offense that, even if proven, carries a nominal penalty,” Spiro said in a statement.
@ Newshounds News™
Source: CryptoBeiefing
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UAE STEPS UP AS GLOBAL CRYPTO LEADER WHILE TRUMPS WATCH CLOSELY
Why does Eric Trump think UAE holds the answer to America’s crypto struggles?
▪️UAE’s crypto success showcases innovation-driven growth with clear regulations and tax incentives.
▪️Trump administration eyes blockchain and stablecoin integration to lead global digital finance competition.
As the United States braces for a potential cryptocurrency policy shift, with Donald Trump set to assume office on the 20th of January. Now, the spotlight has turned to global leaders in digital finance.
UAE’s crypto vision
Among them, the United Arab Emirates (UAE) stands out as a thriving hub for cryptocurrency and blockchain innovation.
Advocates suggest the UAE’s clear regulations and strategic investments offer a compelling blueprint for the incoming U.S. administration.
In fact, by embracing blockchain and establishing robust regulatory frameworks, the UAE has struck a leadership position in an industry where the U.S. has often faltered.
Eric Trump on UAE’s role in crypto
Speaking on the matter, Eric Trump during the Bitcoin [BTC] MENA conference in Abu Dhabi, underscored the UAE’s role as a model for crypto advancement.
He said,
“The UAE has shown how to do this right. By supporting crypto innovation, they’ve created jobs, attracted investment and strengthened their global standing. The U.S. can and should do the same.”
In fact, between July 2023 and June 2024, crypto transactions in the UAE soared to an impressive $34 billion, marking a 42% increase from the prior year, as per Chainalysis’ report.
UAE’s crypto success story
A key factor in this surge was the government’s decision to exempt cryptocurrency transactions from value-added tax. This exemption was applied retroactively to 2018.
This tax relief, designed to “supercharge” the sector, has reinforced the UAE’s position as a global leader in digital finance. It has attracted businesses and investors.
Additionally, there has been a significant focus on stablecoins due to their reliability in volatile cryptocurrency markets. Stablecoins are increasingly utilized for cross-border payments and everyday transactions.
Other developments
Additionally, in a notable development, Tether announced plans to introduce a Dirham-backed stablecoin in partnership with Abu Dhabi-based firms.
Remarking on the same, Eric Trump added,
“Stablecoins are a bridge between traditional and digital financial systems. They offer reliability and liquidity, making them a key tool for financial inclusion and global trade.”
Additionally, the UAE’s progressive integration of blockchain into public services and its balanced regulatory approach has further provided a compelling blueprint for various nations.
What should Trump take away from UAE’s playbook?
As the Trump administration focuses on digital finance, the U.S. faces a critical moment to redefine its role in the global crypto market.
With the sector’s market capitalization soaring to $3.3 trillion in 2024, the stakes have never been higher.
Trump’s decisive actions show a commitment to innovation while safeguarding investors. With fierce international competition, this isn’t just about reviving the crypto landscape—it’s a race to lead the future of digital finance.
@ Newshounds News™
Source: AMB Crypto
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CONGRESSMAN PROPOSES IRS ELIMINATION
On Jan. 9, 2025, congressman Earl Carter proposed a bill replacing the US tax code with a national consumption tax and abolishing the IRS. Earlier this month, the IRS was sued by Blockchain Association over the new reporting rule.
New tax system
The H.R. 25 bill, or The Fair Tax Act of 2025, was introduced by Rep. Earl “Buddy” Carter (R–GA). The bill challenges the existing U.S. tax code and the taxation policy status quo and aims to promote freedom, fairness, and economic opportunity. The Fair Tax Act calls to repeal the income, payroll, estate, and gift taxes. Instead, the act proposes enacting the sales tax.
According to the bill, the existing Federal income tax retards the economic growth and international competitiveness of the U.S., discourages small businesses and farms, and downgrades the standard of living of Americans, decreasing the savings and investment rates.
On top of that, the bill indicates the harm of the existing unnecessary administrative and compliance cost pressure on individual and corporate taxpayers. Privacy violations and lack of transparency in taxation are other problems associated with the Federal income tax. According to the Fair Tax Act, the Social Security, Medicare payroll taxes, and self-employment taxes hurdles employment rates.
The alternative proposed in the bill is a broad-based national sales tax on goods and services purchased for final consumption. The act proposes to tax all consumption of goods and services in the U.S. once, preventing double, multiple, and cascading taxation.
According to the bill, it will facilitate savings and investment, improve the standard of living of Americans, help businesses, and undo all other evils associated with the actual tax system. Also, the Fair Tax Act provides notes on how the government should foster the change in the policy.
IRS abolition
One of the most radical changes proposed in the Fair Tax Act is the Internal Revenue Service abolition. The move is meant to get rid of the bureaucratic burdens on individual and business taxpayers.
According to Carter, the tax system introduced in the legislation eliminates the need for the IRS. The taxes should be easy and transparent so that people will not need professional assistance to fill out their taxes.
The bill is supported by a number of Republican congressmen, including Barry Loudermilk, Eric Burlison, John Carter, Scott Perry, John Rutherford, Warren Davidson, Andy Biggs, Dale Strong, Rich McCormick, Andy Harris, and Andrew Clyde.
The latter noted that the act “provides a commonsense solution to eliminate the need for the weaponized IRS, simplify our tax code, and foster economic prosperity”.
Rep. Strong adds that the proposed taxation system will make illegal immigrants pay taxes fairly.
IRS vs the crypto community
The IRS was sued over the new reporting rules introduced by the service the day the rules were introduced, i.e., on Dec. 28, 2024. The complaint is signed by several organizations, including Blockchain Association, Texas Blockchain Council, and DeFi Education Fund.
The new reporting rules impose a threat to the well-being of the DeFi sector as it redefines the broker notion. According to the new rules, DeFi platforms will be considered brokers. They will have to provide the transaction info and proceeds to the IRS until 2027.
The complaint clears that DeFi platforms are not brokers, and that’s what makes them unique and innovative. As peer-to-peer systems, they don’t depend on brokers or any other intermediaries, so the IRS’ new rules should not apply to them, but they do.
The plaintiffs find the rules unconstitutional and harmful to American development and leadership in the crypto industry. They note that if the rules get into effect, this may impact many leading industry brands to find better jurisdictions instead of working in America.
Considering this, the IRS abolition may be seen as a possibility to end the service’s attacks on the DeFi ecosystems. However, it is not clear yet if the Fair Tax Act of 2025 will be adopted. The history of the act began back in 1999. Will 2025 be a breakthrough year? We’ll see.
@ Newshounds News™
Source: Crypto News
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