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IRS Issues Guidance on Non-Fungible Tokens – What It Says and Does Not Say

Photo of Betsy SmithPhoto of Nicholas C. MowbrayPhoto of Robert A. MusialaPhoto of Teresa Goody GuillénBy Betsy Smith, Nicholas C. Mowbray, Robert A. Musiala and Teresa Goody Guillén on Posted in Alert
NFT non fungible token golden coins falling. Trendy cryptocurrencies and coins on the blockchain technology. Close up view of crypto money in 3D renderingThe Proposed Guidance and Implications The IRS and Treasury Department announced on March 21, 2023, that they intend to issue guidance providing that certain NFTs qualify as collectibles under Section 408(m) of the Code. The Notice is the first guidance issued by the IRS addressing the U.S. federal income tax treatment of NFTs. The IRS … Continue Reading

New Congressional Subcommittees Foreshadow Pending Digital Asset Legislation

Photo of Kevin EdgarPhoto of Teresa Goody GuillénPhoto of Michelle TanneyPhoto of Veronica ReynoldsBy Kevin Edgar, Teresa Goody Guillén, Michelle Tanney and Veronica Reynolds on Posted in Alert
Takeaways OverviewTwo congressional committees of the U.S. House of Representatives commenced the new year by announcing the creation of new subcommittees for the 118th Congress that are expected to analyze issues concerning cryptocurrency and digital assets. The creation of these subcommittees signals the potential for legislative action in the wake of jurisdictional uncertainty regarding federal … Continue Reading

IRS Warns: Hundreds of Crypto Criminal Tax Cases Coming Soon; Hiring of 300 Special Agents Means More to Follow

Photo of Christina GotsisPhoto of Carlos OrtizPhoto of Veronica ReynoldsPhoto of Betsy SmithPhoto of Kayley SullivanBy Scott Danielson, Christina Gotsis, Carlos Ortiz, Veronica Reynolds, Betsy Smith and Kayley Sullivan on Posted in Alert
The 2022 annual report from the IRS Criminal Investigations (CI) division (the Report) demonstrates an impressive year for enforcement, particularly with regard to cryptocurrency. Following the publication, CI Chief Jim Lee made clear that the division will continue to closely scrutinize crypto transactions. He warned: “Expect more outward-facing tax crypto cases here in the near … Continue Reading

US District Court Finds LBRY Tokens Are Securities

Photo of Teresa Goody GuillénPhoto of Joanna F. WasickPhoto of Adam GalePhoto of Kevin EdgarPhoto of Robert A. MusialaPhoto of Veronica ReynoldsPhoto of Sydney ParkBy Teresa Goody Guillén, Joanna F. Wasick, Adam Gale, Kevin Edgar, Robert A. Musiala, Veronica Reynolds and Sydney Park on Posted in Alert
In 2016, crypto startup LBRY launched the LBRY network and the LBRY protocol, described by LBRY as a decentralized content sharing and publishing protocol that supports the creation of community-run digital marketplaces. The same year, LBRY offered and sold native LBC tokens to the public for the purported purpose of allowing LBRY users to compensate … Continue Reading

Major U.S. Crypto Exchange Consents to $29 Million Penalty for Historic BSA and OFAC Violations Body

Photo of Jonathan A. FormanPhoto of Teresa Goody GuillénPhoto of Keith R. MurphyPhoto of Robert A. MusialaPhoto of Veronica ReynoldsPhoto of Joanna F. WasickBy Jonathan A. Forman, Teresa Goody Guillén, Keith R. Murphy, Robert A. Musiala, Veronica Reynolds and Joanna F. Wasick on Posted in Alert
On October 11, 2022, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and Office of Foreign Assets Control (OFAC) announced a $29 million civil monetary penalty against Bittrex, a major U.S. cryptocurrency exchange, as part of a global settlement with FinCEN and OFAC related to Bittrex’s alleged historic violations of the Bank … Continue Reading

Treasury Plans Significant Actions to Curb Illicit Digital Asset Financing

Photo of Jonathan A. FormanPhoto of Robert A. MusialaPhoto of Christina GotsisBy Jonathan A. Forman, Robert A. Musiala and Christina Gotsis on Posted in Alert
As part of a coordinated effort with the U.S. Secretary of State, Attorney General, Secretary of Commerce, Secretary of Homeland Security, Director of the Office of Management and Budget, Director of National Intelligence, and heads of other relevant agencies, Treasury developed the Action Plan to detail the evolving threats and risks facing the digital asset … Continue Reading

The U.S. Department of the Treasury Provides a Glimpse into the Future of Money and Payments

Photo of Joanna F. WasickPhoto of Robert A. MusialaPhoto of Kevin EdgarPhoto of J'Naia BoydBy Joanna F. Wasick, Robert A. Musiala, Kevin Edgar and J'Naia Boyd on Posted in Alert
The Report responds to Section 4(b) of the EO and evaluates the U.S. system of money and payments, developments in stablecoins and instant payment systems, and a potential CBDC, using the following policy objectives as a guide: (1) provide benefits and mitigate risks for consumers, investors, and businesses; (2) promote economic growth and financial stability … Continue Reading
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