The simple answer is that Congress has not yet passed laws that truly define what Cryptocurrencies are in the eyes of the government. To the IRS, it is merely p

The simple answer is that Congress has not yet passed laws that truly define what Cryptocurrencies are in the eyes of the government. To the IRS, it is merely property and is taxed as such. The SEC would like to regulate Bitcoin and Altcoins as securities, but securities law was never designed with these things in mind. That's why the penny-stock pumping example would be regulated, but doing the same thing with an Altcoin is permissible. Eventually, I expect Congress will pass some sort of law on the subject. I hope it's not too restrictive on ordinary citizens who own crypto. What we're seeing is a wild west and I don't think it will last much longer.