#TrumpTariffs
Digital Assets Report talk about.
From its inception, Bitcoin was designed by Satoshi Nakamoto to support a wide variety of transaction types (such as escrow contracts, multi-signature, third-party arbitration, etc.). This forward-thinking design aimed to ensure these functions would be possible in the future. However, the rise of digital assets has created challenges for properly applying federal tax laws, as many of these transactions have no equivalent in traditional finance.
Therefore, there's a need to provide clear guidance or update legislation to address the unique characteristics of digital assets, which would help taxpayers comply with their obligations and promote wider adoption. One example of a pro-innovation stance was a resolution signed by former President Trump, which overturned a Biden Administration effort to classify certain developers as "brokers" for tax purposes, even though they never had custody of users’ assets.
Lastly, the federal tax system is based on the Internal Revenue Code, regulations, treaties, case law, and IRS-issued guidelines. For digital assets, key questions involve timing, source, and the nature of income (capital vs. ordinary), as well as how current laws apply.
