Taxes, AI, and the Inverse Jim Cramer strategy make for a weird week in crypto

Welcome to Token Issue! Delivered every Friday, this free newsletter breaks down the biggest stories in Asia’s crypto scene and beyond. View past issues here or sign up here to receive future newsletters.

Good news, everyone,

Jim Cramer still has it. The host of CNBC’s Mad Money and the progenitor of the Inverse Jim Cramer Strategy said the collapse of First Republic Bank would probably end the US banking crisis.

Since then, the stock prices of PacWest Bancorp and Western Alliance Bank have both tanked and as of Thursday, PacWest Bancorp appear to be heading for receivership.

What does this mean for crypto? It depends who you ask.

Some analysts think the plummeting confidence in banks will drive depositors to crypto. But the US government is likely to bail out failed banks to prevent the panic from escalating, so deposits may just stay where they are.

Then again, any bailout could hurt confidence in the US dollar, which may again drive money into crypto. There’s also a final consideration – the US government is going full-scale anti-crypto, which is casting doubt on the continued viability of the industry if it doesn’t have the support of the world’s largest economy.

That is volatility in a nutshell and is why you should be very cautious about what the financial experts tell you – unless, of course, it’s Jim Cramer. Then do the opposite.

So while we wait for the analysts to get their stories straight, let’s take a look at the biggest stories this week.

— Scott

👀 ALL EYES ON…

What everyone’s talking about.

Image credit: Timmy Loen

1️⃣ White House pushes for tax on crypto mining
The Biden administration is looking to impose a new tax on crypto mining operations for the “harms they impose on society,” the White House posted on Tuesday.

According to the post, crypto mining firms aren’t paying for the full costs that they incur. These include “local environmental pollution, higher energy prices, and the impacts of increased greenhouse gas emissions on the climate.” The Digital Asset Mining Energy tax could eventually force firms to pay an amount equal to 30% of the cost of the electricity the companies use for crypto mining.

⭐ TO THE STARS

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