Bitcoin vs Crypto
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Bitcoiners,
BREAKING: SEC Charges Kim Kardashian $1.3M fine for Unlawfully Touting Crypto Security
The press release published by the United States Securities and Exchange Commission (SEC) today shows a clear regulatory divide shaping up between Bitcoin and other crypto assets.
Here are the legal classifications you need to know about Bitcoin and other cryptocurrencies so you can make knowledgeable investment decisions in the future.
Regulators
Three major bodies oversee the legality of cryptocurrencies on the Federal level in the United States.
US Securities and Exchange Commission (SEC)
Commodity Futures Trading Commission (CFTC)
Internal Revenue Service (IRS)
Bitcoin
Bitcoin is considered a commodity by US regulators.
In 2014, the IRS stated bitcoin is treated as property for Federal income tax purposes. In 2015, the SEC declared bitcoin is not a security and the CFTC declared bitcoin is treated as a commodity, like gold.
Other Crypto Assets
Over the past year, the SEC has been on a mission to make the divide between Bitcoin and other crypto assets very clear.
The recent charges for promoting EthereumMax, an unregistered crypto asset promoted by celebrities such as Kim Kardashian and Floyd Mayweather Jr., show the SEC is cracking down on other cryptocurrencies considered to be securities.
Further comments from SEC Chair Gary Gensler show their commitment to distinguishing Bitcoin from the rest.
“The law is clear on this. I believe, based on the facts and circumstances, most of these tokens are securities. When a group of entrepreneurs is raising money from the public, and they’re anticipating a profit, they need disclosure.” - Gary Gensler
Are there any other crypto assets worth classifying as a commodity like Bitcoin? Let me know your thoughts by replying to this post.
Happy Monday,
-Pod
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Eric Podwojski
Founder, Bitcoin EDU
Twitter: @epodrulz
Disclaimer: This should go without saying: This is not financial advice. This is not investment advice. I write this newsletter for education and entertainment. Act accordingly.
