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Gambling happens in real world markets as well, but that doesn't mean that real world markets are casinos. Beaniebabies were effectively regulated and taxed li
by darksaints 3y ago
Gambling happens in real world markets as well, but that doesn't mean that real world markets are casinos.
Beaniebabies were effectively regulated and taxed like commodities. Commodities do not require a real-world use. All they are are tradable non-currency things which can result in capital gains.
The speculative (HODL!!) cryptocurrencies should probably be treated like commodities, and regulated as such by the CFTC. The cryptocurrencies that are actually being used like currencies (e.g. actually used to buy things) should be regulated like foreign currencies, which would also be regulated by the CFTC (this is essentially the same exact thing as Commodities trading, but with simpler accounting rules which reflect the much higher liquidity, divisibility, and likelyhood that a unit changes hands). Neither of these scenarios involve the SEC. The SEC should only be involved when coins are being issued like securities (e.g. as a way to raise funding and sell financial stakes in some kind of enterprise).
- ProjectArcturis 3y agoIIRC beanie babies and similar are classified as "collectibles" and have different (worse) tax treatment than commodities.
- darksaints 3y agoCollectibles are just a subclass of Commodities which can't be taxed using Mark To Market rules, but there are a whole host of commodities which are just like that. Precious metals, rare coins, cards, comics, etc., are all collectibles, but they are still commodities for regulatory purposes. For example, here is PR release of a CFTC enforcement action against some fraudulent coin dealers: https://www.cftc.gov/PressRoom/PressReleases/8694-23 https://www.cftc.gov/PressRoom/PressReleases/8694-23 IIRC, the IRS and CFTC have already issued rules to treat NFTs as collectibles.
- ForHackernews 3y ago> The cryptocurrencies that are actually being used like currencies (e.g. actually used to buy things So... none of them? How long are y'all going to carry on this charade?
- darksaints 3y agoHow long are you gonna bury your head in the sand? There are millions of ways to buy actual things with Bitcoin.