New Biden Rule Could Affect AI Cryptocurrencies Like GRT, AGIX, FET

The Biden administration’s recent regulatory changes could have significant implications for AI cryptocurrencies such as GRT, AGIX, and FET. This article explores the potential impacts of these new rules and the broader implications for the cryptocurrency market.

Understanding the New Biden Rule

The Biden administration has proposed a new rule that would require businesses to report cryptocurrency transactions over $10,000 to the Internal Revenue Service (IRS). This move is part of a broader effort to crack down on tax evasion and ensure that all income, including that from cryptocurrencies, is accurately reported.

Implications for AI Cryptocurrencies

AI cryptocurrencies like GRT (The Graph), AGIX (SingularityNET), and FET (Fetch.ai) could be significantly affected by this new rule. These cryptocurrencies leverage artificial intelligence and blockchain technology to provide decentralized services, and their value often hinges on the volume of transactions they process.

• GRT: The Graph is a decentralized protocol for indexing and querying data from blockchains. It’s often referred to as the “Google of Blockchains”. The new rule could discourage high-volume transactions, potentially impacting GRT’s value.
• AGIX: SingularityNET is a decentralized marketplace for AI services. If businesses using AGIX for large transactions are deterred by the new reporting requirements, it could affect the token’s value.
• FET: Fetch.ai is a blockchain-based artificial intelligence platform that uses a native cryptocurrency for transactions. The new rule could impact the volume of transactions, and thus the value of FET.

Case Study: The Impact of Regulatory Changes on Cryptocurrencies

Historically, regulatory changes have had significant impacts on cryptocurrency markets. For example, when China announced a crackdown on cryptocurrencies in 2017, Bitcoin’s value dropped by 20%. Similarly, when South Korea announced stricter regulations in 2018, the global cryptocurrency market lost $106 billion in value in just one day.

Statistics: Cryptocurrency and Tax Evasion

According to the IRS, cryptocurrency transactions are significantly underreported. In 2015, only 802 people reported Bitcoin transactions to the IRS, despite millions of transactions taking place. This underreporting is a significant concern for the IRS, as it means potential lost revenue. The new Biden rule aims to address this issue by making reporting mandatory for larger transactions.

Conclusion: The Future of AI Cryptocurrencies Under the New Biden Rule

The new Biden rule could have significant implications for AI cryptocurrencies like GRT, AGIX, and FET. While it’s too early to predict the exact impact, it’s clear that these changes could affect the volume of transactions and, consequently, the value of these cryptocurrencies. However, it’s also important to note that these changes could lead to greater transparency and legitimacy in the cryptocurrency market, potentially attracting more investors in the long run.

As the regulatory landscape continues to evolve, it’s crucial for investors and businesses to stay informed and adapt their strategies accordingly. The future of AI cryptocurrencies under the new Biden rule will undoubtedly be a key area to watch.