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Isn't that because crypto is not considered currency by the US? You only get to not do this if you are paying debts in USD, even though the value of USD could f

Isn't that because crypto is not considered currency by the US? You only get to not do this if you are paying debts in USD, even though the value of USD could fluctuate in the same way theoretically, that is ignored.

vmception 6y ago
Correct, the IRS is capable of perceiving how an asset can be used, but they are not capable of unilaterally declaring the classification of an asset. Currently, when it comes to determining whether an asset is a "currency", it has to be issued or used by a recognized nation state, or Congress has to label the asset as such. Congress could easily delegate additional discretion to the IRS, they just haven't yet as they have been unprepared for this outcome. When you look at the universe of assets, they either exist in walled gardens (brokerage accounts that there is no expectation to withdraw from, or that you simply can't withdraw from), are not easily divisible or have separate denominations if they were, or are impractical to transport (a barrel of oil, other spot commodities), or are not fungible (art, collectibles, barter assets). All crypto assets transcend and overlap with the fungibility of every other asset class all at once, while being able to function as non-fungible assets if desired.
- gamblor956 6y ago
  Congress could easily delegate additional discretion to the IRS, they just haven't yet as they have been unprepared for this outcome. Congress has considered this matter already, and they have chosen not to treat cryptocurrency as a domestic currency by refusing to consider bills that would classify cryptocurrency as a domestic currency. Non-domestic currency (i.e., foreign currency) is treated as an asset under US tax law, and as a currency not issued by the US government, cryptocurrency is a non-domestic currency and is thus subject to the same tax treatment. All of that other stuff you said is irrelevant.
  - vmception 6y ago
    They havent chosen they havent gotten out of committee, like thousands of other bills per session. I would agree with you if the full house actually voted and failed.

vmception 6y ago

Correct, the IRS is capable of perceiving how an asset can be used, but they are not capable of unilaterally declaring the classification of an asset. Currently, when it comes to determining whether an asset is a "currency", it has to be issued or used by a recognized nation state, or Congress has to label the asset as such. Congress could easily delegate additional discretion to the IRS, they just haven't yet as they have been unprepared for this outcome. When you look at the universe of assets, they either exist in walled gardens (brokerage accounts that there is no expectation to withdraw from, or that you simply can't withdraw from), are not easily divisible or have separate denominations if they were, or are impractical to transport (a barrel of oil, other spot commodities), or are not fungible (art, collectibles, barter assets). All crypto assets transcend and overlap with the fungibility of every other asset class all at once, while being able to function as non-fungible assets if desired.

gamblor956 6y ago
Congress could easily delegate additional discretion to the IRS, they just haven't yet as they have been unprepared for this outcome. Congress has considered this matter already, and they have chosen not to treat cryptocurrency as a domestic currency by refusing to consider bills that would classify cryptocurrency as a domestic currency. Non-domestic currency (i.e., foreign currency) is treated as an asset under US tax law, and as a currency not issued by the US government, cryptocurrency is a non-domestic currency and is thus subject to the same tax treatment. All of that other stuff you said is irrelevant.
- vmception 6y ago
  They havent chosen they havent gotten out of committee, like thousands of other bills per session. I would agree with you if the full house actually voted and failed.