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The article hints that the loophole is that USDC (circle/Coinbase) allegedly welcomes regulation that USDT (Bitfinex) and BUSD (Binance) can’t pass. I’m not sur

The article hints that the loophole is that USDC (circle/Coinbase) allegedly welcomes regulation that USDT (Bitfinex) and BUSD (Binance) can’t pass. I’m not sure what to call it but it is not a loophole. I don’t trust the elderly 80 year old congress members to come up with good rules for crypto since it’s something old people barely understand or care about.

throwawaycities 5y ago
> I don’t trust the elderly 80 year old congress members to come up with good rules for crypto since it’s something old people barely understand or care about. Most laws are written by private industry not law makers, odds are you couldn’t find a dozen lawmakers that have read legislation much less written it. They have staff, usually young law grads that read it and give them talking points.
IncRnd 5y ago
It's a mistake on your part to think them stupid. They are smart and crafty, but the key part is that their goals are mostly not your goals. Many are in Congress to individually make boatloads of cash through one method or another - not to make good rules for you to trade crypto.
- webinvest 5y ago
  Their goals are supposed to be the goals of their constituents. They should be making good decisions for the wellness of their people and their economy. Why do they still need to make boat loads of cash —- do they not have stock market retirement accounts and cryptocurrency wallets* so they could retire like normal grandparents? *Jokes on the cryptocurrency wallets.
- deleted 5y ago
  [deleted]
renw0rp 5y ago
I would argue that most of young people don't understand it either
throwaway2331 5y ago
Apologies if this is off-topic, but I have a question that may be up your alley: Are crypto taxes recursive? For example: Person A gets paid $1,000 BUSD for services rendered to company B. The transaction/movement of crypto from Company B to Person A is treated as a transfer of property and is taxed at 10% for short-term capital gains tax of $100. Assume Person A wishes to pay these taxes using crpyto, and then sells/swaps $100 BUSD for USD (with no transaction fees). Would this then constitute another transfer of property that would then be taxed another 10%? I've been having some trouble wrapping my head around how it would like for a person to live a crypto-only life.
- lostmsu 5y ago
  Capital gain is difference between buy and sell prices in country's currency. $1000 BUSD are always worth $1000 USD (assuming you're taking about stablecoins). So there's no gain to tax.
- PeterisP 5y ago
  Wait, your example seems a bit weird. If person A gets paid $1,000 BUSD for services rendered to company B, that's not transfer of property, that's definitely income and taxed as income at the appropriate income tax rate no matter if the compensation for services rendered was paid out in USD, BUSD, gold, goats or other services (e.g. barter of services according to https://www.irs.gov/taxtopics/tc420 https://www.irs.gov/taxtopics/tc420) - in all non-USD cases, you just use the USD value of the non-USD-thing, which should be simple for stablecoins. On the other hand, if BUSD is stable and does not grow in value, then short-term capital tax does not apply, since there are no capital gains. If person A was paid 1000 randomcoin that was worth $1000 at the time of payment, and by the time they needed to sell some of them to pay taxes they had doubled in value, then yes, they would have to pay 10% of the value increase as well. That sale/capital gains trigger would likely be in the next tax period, so the "recursive" tax would be due a year later than the "initial" tax.
- deleted 5y ago
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- cslarson 5y ago

throwawaycities 5y ago

> I don’t trust the elderly 80 year old congress members to come up with good rules for crypto since it’s something old people barely understand or care about. Most laws are written by private industry not law makers, odds are you couldn’t find a dozen lawmakers that have read legislation much less written it. They have staff, usually young law grads that read it and give them talking points.

IncRnd 5y ago

It's a mistake on your part to think them stupid. They are smart and crafty, but the key part is that their goals are mostly not your goals. Many are in Congress to individually make boatloads of cash through one method or another - not to make good rules for you to trade crypto.

webinvest 5y ago
Their goals are supposed to be the goals of their constituents. They should be making good decisions for the wellness of their people and their economy. Why do they still need to make boat loads of cash —- do they not have stock market retirement accounts and cryptocurrency wallets* so they could retire like normal grandparents? *Jokes on the cryptocurrency wallets.
deleted 5y ago
[deleted]

renw0rp 5y ago

I would argue that most of young people don't understand it either

throwaway2331 5y ago

Apologies if this is off-topic, but I have a question that may be up your alley: Are crypto taxes recursive? For example: Person A gets paid $1,000 BUSD for services rendered to company B. The transaction/movement of crypto from Company B to Person A is treated as a transfer of property and is taxed at 10% for short-term capital gains tax of $100. Assume Person A wishes to pay these taxes using crpyto, and then sells/swaps $100 BUSD for USD (with no transaction fees). Would this then constitute another transfer of property that would then be taxed another 10%? I've been having some trouble wrapping my head around how it would like for a person to live a crypto-only life.

lostmsu 5y ago
Capital gain is difference between buy and sell prices in country's currency. $1000 BUSD are always worth $1000 USD (assuming you're taking about stablecoins). So there's no gain to tax.
PeterisP 5y ago
Wait, your example seems a bit weird. If person A gets paid $1,000 BUSD for services rendered to company B, that's not transfer of property, that's definitely income and taxed as income at the appropriate income tax rate no matter if the compensation for services rendered was paid out in USD, BUSD, gold, goats or other services (e.g. barter of services according to https://www.irs.gov/taxtopics/tc420 https://www.irs.gov/taxtopics/tc420) - in all non-USD cases, you just use the USD value of the non-USD-thing, which should be simple for stablecoins. On the other hand, if BUSD is stable and does not grow in value, then short-term capital tax does not apply, since there are no capital gains. If person A was paid 1000 randomcoin that was worth $1000 at the time of payment, and by the time they needed to sell some of them to pay taxes they had doubled in value, then yes, they would have to pay 10% of the value increase as well. That sale/capital gains trigger would likely be in the next tax period, so the "recursive" tax would be due a year later than the "initial" tax.
deleted 5y ago
[deleted]
cslarson 5y ago