Crypto Regulation Shift in 2024: Trump’s Pro-Crypto SEC Chair Pick and UAE’s Bold Tax Move

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Today, October 7th, 2024, the world is facing significant events across various regions:

• Middle East tensions: The conflict between Israel and Hamas has escalated, marking the one-year anniversary of Hamas' October 7th attacks. Airstrikes are continuing in Lebanon, with Israel targeting Hezbollah infrastructure, and families of hostages are protesting in Tel Aviv. Meanwhile, Israel prepares a military response to an Iranian missile attack, despite U.S. President Biden stating that the U.S. will not back Israeli strikes on Iran's nuclear facilities​

• Hurricane Milton: Florida is bracing for the impact of Hurricane Milton, expected to make landfall as a Category 3 storm. Florida Governor Ron DeSantis has declared a state of emergency, urging residents to evacuate​(

• U.S. Election: The 2024 presidential race is heating up with Donald Trump rallying in Pennsylvania and Wisconsin, while Vice President Kamala Harris campaigns in Michigan. These states are critical battlegrounds that could determine the election outcome, with both candidates focusing on key issues such as immigration and economic policy​

In today’s email:

• Robinhood Executive: Eyed For Potential SEC Chair

• UAE: No Tax On Crypto!

• Americans: Politics > Money

Pro-Crypto Robinhood Executive Dan Gallagher Could Replace Gensler as SEC Chair if Trump Wins 2024 Election 🪶

Dan Gallagher, Robinhood’s Chief Legal Officer, has emerged as a leading candidate to take over as SEC Chair should Donald Trump win the 2024 presidential election. Gallagher, known for his pro-crypto stance, is being considered to succeed Gary Gensler, whose aggressive regulatory approach has faced criticism from the crypto community.

Gallagher’s extensive experience includes his role as a former SEC commissioner under President Obama, as well as his legal work advising previous SEC commissioners during the Bush administration. Under his leadership, Robinhood has made significant moves into the crypto space. He has been vocal in defending Robinhood’s crypto offerings, asserting that the assets listed on their platform should not be classified as securities, a direct challenge to Gensler's viewpoint.

Other Crypto Advocates in the Running In addition to Gallagher, two other notable crypto proponents are reportedly being considered for the SEC Chair role: Chris Giancarlo, the former chair of the Commodity Futures Trading Commission (CFTC) under Trump, and Hester Peirce, a current SEC commissioner and critic of the agency’s tough stance on cryptocurrencies. Both Giancarlo and Peirce have openly supported more innovation-friendly regulations for digital assets, contrasting sharply with Gensler’s stringent enforcement actions against crypto firms.

Gensler’s Regulatory Crackdown on Crypto Under Gensler, the SEC has ramped up its scrutiny of the crypto sector, filing lawsuits against major exchanges like Coinbase, Binance, and Kraken. Robinhood, too, has faced potential SEC actions, with Gensler suggesting that several of the crypto assets offered by the platform could be classified as unregistered securities. Trump's campaign has vowed to overhaul these policies, with a particular focus on loosening crypto regulations if he reclaims the presidency.

Implications for the Crypto Landscape A Trump-led SEC under Gallagher or another pro-crypto chair could lead to a shift in the regulatory environment, potentially promoting greater innovation in the U.S. crypto markets. While a more crypto-friendly approach may ease certain restrictions, it is expected that any new SEC leadership would still prioritize investor protection, curbing fraud, and preventing market manipulation. The extent of regulatory relaxation remains to be seen.

This shift could mark the end of the current SEC's adversarial stance toward crypto, bringing a new era of growth for digital assets in the U.S. market.

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UAE Abolishes VAT on Cryptocurrency Transactions 🇦🇪

• UAE exempts cryptocurrency transfers and conversions from value-added tax (VAT)

• The exemption applies retroactively from January 1, 2018

• Crypto businesses advised to review the impact on input tax recovery

The United Arab Emirates (UAE) has taken a progressive step toward enhancing its position as a leading crypto-friendly jurisdiction by amending its value-added tax (VAT) laws to exempt cryptocurrency transactions. As of October 2, the UAE’s Federal Tax Authority (FTA) has officially exempted virtual asset transfers and conversions from VAT, retroactively applied from January 1, 2018.

VAT Exemptions for Crypto Transactions
This update, announced by the FTA, provides exemptions for managing investment funds and handling cryptocurrency conversions and transfers. According to PwC, this exemption classifies virtual assets as digital representations of value that can be traded or used for investments, though it excludes fiat currencies and traditional financial securities.

Impact on Virtual Asset Firms
Crypto businesses operating in the UAE should now carefully assess the retrospective impact of these VAT exemptions on their operations, particularly in relation to input tax recovery. These firms may need to adjust their historical tax filings and possibly make voluntary disclosures if they had been paying VAT on transactions that are now exempt.

Regulatory Developments in the UAE
This tax relief follows recent regulatory measures in the UAE. The Virtual Asset Regulatory Authority (VARA) and the Securities and Commodities Authority (SCA) have recently collaborated to co-regulate virtual asset providers across the UAE. Additionally, Dubai has tightened its rules on crypto marketing, mandating risk disclaimers in promotional materials, signaling the UAE's ongoing effort to balance innovation with investor protection.

Americans Prefer Talking Politics Over Money, But Avoiding Financial Conversations Could Be Costly 💰

Many Americans find it easier to discuss politics than to talk about their personal finances. Research from U.S. Bank, based on a survey of 3,500 individuals, revealed that people would rather disclose their voting choices in the upcoming presidential election than talk about their financial situations. This sentiment was echoed in a separate Wells Fargo survey, which found that discussing money ranks almost as difficult as discussing personal topics like sex.

The reluctance to talk about finances is deeply rooted in anxieties and aspirations tied to money, says financial expert Preston Cherry. Unlike a presidential election, which happens every four years, the relationship with money is ongoing and highly personal, which makes it harder for people to open up.

While U.S. Bank's research indicates that financial conversations are becoming more common, they still tend to remain superficial. Scott Ford of U.S. Bank highlighted that this is a missed opportunity for families and couples. Not discussing money can lead to misunderstandings, financial misalignments, and missed opportunities for effective wealth planning. Winnie Sun of Sun Group Wealth Partners echoed this, stating that avoiding these crucial conversations limits the ability to build wealth and plan for the future.

Talking Money Before Emergencies Arise

Family financial conversations are especially important, particularly when it comes to preparing for emergencies. A lack of financial transparency within families can lead to stress when sudden events like health scares occur. U.S. Bank's study found that 45% of people are unaware of their parents' financial situation, which could leave them unprepared if they need to offer financial help in the future.

Financial experts advise families to start small by discussing everyday financial matters, such as prescription costs, to build up to larger topics like estate planning and long-term health care.

Couples and Financial Disagreements

Money can be a significant source of tension in relationships. According to U.S. Bank's survey, more than one-third of Americans disagree with their partners on financial management, and 30% admit to lying to their partner about money. This dishonesty, known as financial infidelity, often arises when couples are not aligned on financial goals.

To address these issues, couples are encouraged to create a welcoming environment for money conversations. Financial advisors can act as neutral mediators to help couples work through disagreements and set common financial goals.

Starting these discussions early, whether with family members or partners, can help avoid legal complications, tax inefficiencies, and unnecessary stress in the future.

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