Abstract
The recent boom of cryptocurrency and crypto-based assets has highlighted the need for cohesive regulatory and taxation frameworks. Multiple U.S. agencies attempted to classify, regulate, and tax the use of such assets, but without a consensus, the users find themselves facing unexpected charges or tax bills. This Article discusses certain nuances that have not been addressed by the Internal Revenue Service in its treatment of cryptocurrencies and assets and showcases how complicated the current regime is when it comes to both compliance and enforcement. The Article ultimately reaches the conclusion that this emerging asset class does not fit into any existing classifications and rules, and that the government may benefit from halting its taxation until it creates a new approach that would not disadvantage this new digital economy or individual taxpayers.
Last Page
377
Recommended Citation
Sofya Bakradze,
To Tax or Not to Tax or How to Tax: Tax Policy and its Role in Cryptocurrency Adoption,
28
Rich. J.L. & Tech
340
(2024).
Available at:
https://scholarship.richmond.edu/jolt/vol28/iss2/3