The Bill in question is the Responsible Financial Innovation Act. It is a crucial part of President Biden’s game plan for tackling cryptocurrencies and introducing greater regulation.
Crypto regulation powers ahead globally, with Europe, The United States, and The United Kingdom all dabbling in bringing greater regulatory clarity to the digital asset realm. The act seeks to make inroads into crypto with the thesis that increased regulation will bring greater operational stability.
A core part of this act seeks to establish a clear framework for DAOs which have exploded in popularity in recent years seeking to incorporate them into the tax framework.
The outcome remains unclear, but if DAOs become mandated to pay taxes, on the one hand, it adds further legitimacy to this nascent organizational structure. But on the flip side, the implications are complicated, to say the least.
With global membership often through token ownership, the question becomes which jurisdiction becomes responsible for enforcing these laws. Will DAO members residing in Thailand be subject to regulation from entities domiciled in the United States?
These complications dampen investor sentiment surrounding DAOs, and investors will have to wait for policymakers to provide more precise and lucid outlines of proposed regulations.
Increased regulation makes many investors nervous because elected officials have a track record of being clumsy when regulating new technology. This uncertainty has caused many investors to diversify into crypto projects unaffected by this new legislation, and one project that continues to fly is the Oryen Network.
With uncertainty surrounding investments, Oryen reintroduces simplicity for the investor. This rebase protocol pays out a fixed rate of 90% APY, and all staking requirements are taken care of by smart contracts. The Oryen Autostaking Technic or OAT makes the earning process transparent and sophisticatedly simple: investors who purchase ORY just need to hold it in their wallet, and then the rewards start to compound.
United States lawmakers have DAOs firmly in their crosshairs and want to bring these decentralized governance models firmly into the taxable territory. Investors uncertain of the outcome should air on the side of caution before involving themselves with DAOs and instead diversify their investments, focusing more on DeFi.
Oryen undergoes its Primary Presale Phase and provides early investors with a 15% token bonus. As well as being free from regulatory crackdown this self-contained passive income protocol still has a relatively small market cap opening up the possibility of significant gains for early adopters.
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