Washington State Senators have sponsored a blockchain bill, introduced it to the Senate, and it is now in Committee.
This section focuses on taxes, rules, and regulations regarding cryptocurrency.
To summarize the tax rules for cryptocurrency in the United States, cryptocurrency is an investment property, and you owe taxes when you sell, trade, or use it.
Anyone who realized crypto gains early in a year only to lose money on paper later in the year might want to consider “Tax-Loss Harvesting.”
KYC / AML stands for “Know Your Customer / Anti Money Laundering.” KYC and AML guidelines are followed by banks, insurers, broker-dealers, cryptocurrency exchanges, and other such entities.
The SEC’s Hester Peirce did an interview with Peter McCormack of “What Bitcoin Did” where she discusses crypto regulations.
You can carryover capital losses forward each year. $3k worth of losses can be deducted from capital income or ordinary income each year until the full amount is deducted.
FINRA has been “encouraging” broker-dealers to report details about digital assets. It is good to have formal rules, but some broker-dealers are avoiding crypto to avoid the soft requirements.
Co-Chair of the Congressional Blockchain Caucus, Congressman Tom Emmer (R-MN), is putting forth much needed legislation to provide clarity to tax payers regarding crypto.
In my opinion like-kind property rules for real estate should be applied to cryptocurrency trading. This rule would help smaller investors avoid potential traps, and would still require traders to pay taxes on profits.
The SEC’s Bill Hinman officially announced that Bitcoin and Ethereum are not securities. That hints that Ripple and other top coins like TRON and NEO may not be securities either. However, Hinman noted that many ICOs are securities.