New US Chief of Staff Seems Pro Bitcoin

Author: 
Michael R.
Date: 
December 19, 2018
Read time: 
2 minutes
Bitcoin
Adoption
U.S.

Donald Trump has appointed pro-Bitcoin Mick Mulvaney to act as the White House Chief of Staff beginning in 2019.
In a 2016 report, he reportedly said that Bitcoin is “not manipulatable by any government,” after acknowledging that the Federal Reserve has “effectively devalued the dollar.”

Donald Trump has appointed pro-Bitcoin Mick Mulvaney to act as the White House Chief of Staff beginning in 2019.
In a 2016 report, he reportedly said that Bitcoin is “not manipulatable by any government,” after acknowledging that the Federal Reserve has “effectively devalued the dollar.”

Having an open-minded and arguably pro-cryptocurrency Chief in the White House is a positive step forward for the cryptocurrency industry. The US is one of the largest consumer markets and general economies. If Mulvaney works with Trump, in addition to other agencies such as the SEC, CFTC, and FINRA, then his actions may pave a bright future for the industry.

Still, Mulvaney joining the White House as Chief of Staff will not have any immediate implications. We assume that cryptocurrency is not on the front of his mind, and any discussions around regulation or taxation reform are generally slow moving.

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Interestingly enough, Mulvaney has previously spoken against Trump. According to the Huffington Post, he previously said:
“Yes, I am supporting Donald Trump but I’m doing so as enthusiastically as I can, given the fact that I think he’s a terrible human being.”

We hope that his current position enables him to further rebuild his relationship with Trump and eventually, push the cryptocurrency industry forward.

 

What Type of Tax Reform Would Be Good?

In our opinion, there are currently issues with how the US taxes cryptocurrency. To briefly explain, each trade is a taxable event, even between different cryptocurrencies. If a trader purchases Litecoin with Bitcoin, then he is expected to pay taxes from a realized gain or loss on that trade. The IRS assumed that he sold Litecoin back to USD, then purchased Bitcoin with USD, even if this is not the case. This means that some people owe taxes, which must be paid in USD, without ever touching USD. In many cases, the trader cannot afford to pay the tax and would need to sell crypto to USD to pay taxes, which is also a taxable event. This is one use-case of a few, which we can dive into in a later article.

If you want to stay ahead of the curve and invest in Bitcoin today, then come check out our start investing guides!

Posted by Michael R.

Michael is an entrepreneur who has been deeply involved in the cryptocurrency industry since early 2014. He joined Cryptomaniaks as a cryptoanalyst, helping to create accurate and digestible content.

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