Lawmakers Push to End Puerto Rico's Crypto Tax Haven Status 🏝️

A fresh legislative push might change Puerto Rico's crypto-friendly status. New York Rep. Nydia Velázquez just dropped the Fair Taxation of Digital Assets in Puerto Rico Act. It's targeting the island's crypto haven reputation.

Puerto Rico has these sweet tax breaks. Act 60. Kind of amazing for investors. It's why crypto bigwigs moved there. Dan Morehead from Pantera Capital. Brock Pierce. Logan Paul too.

Paul ditched California for Puerto Rico. Who wouldn't? Four percent income tax versus California's hefty 13% state tax plus the federal 37%. The math speaks for itself.

Rep. Velázquez isn't impressed. "These crypto folks haven't helped recovery," she claims. "They're driving up housing costs. Pushing locals out." It seems the situation is particularly troubling on an island where nearly 40% live in poverty. The feds are losing billions in tax revenue too.

The bill would tweak Puerto Rico's tax code. Crypto gains? Federal tax laws would apply. Her office throws out a number: $4.5 billion in lost revenue between 2020 and 2026. Ouch.

Puerto Rico's Governor has other ideas. González-Colón wants to extend Act 60 from 2035 to 2055. Not entirely clear if this will happen. She's suggesting a mandatory 4% capital gains tax for new applicants. Still way lower than mainland rates.

The Democratic proposal faces challenges. Republicans control both chambers. Hard road ahead. But crypto legislation is coming. Stablecoin rules. Regulatory frameworks. The next few months might be interesting. 🚀