Traditional and Digital Finance Firms Find Common Ground in Their 2023 Market Outlooks

Key Insights

• The IRS recently announced a delay on reporting requirements on digital assets for brokers. As a result, the digital asset amendments in the Infrastructure Investment and Jobs Act remain effective and largely intact.
• The DXY’s downward trend signals a potential future relief rally for BTC and ETH.
• Traditional and digital finance firms agree that regulation, large corporation adoption, and asset tokenization will define blockchain industry outcomes for 2023.

Signals

[UPDATE] IRS delays the reporting requirements on digital assets for brokers. In the last macro report, the Infrastructure Investment and Jobs Act’s (IIJA) tax code amendments for digital assets were explained at length. In short, they could impact the blockchain industry by:

• increasing compliance costs and regulatory burdens;