with the release of the Bitcoin White Paper. Inside that amazing document we learned about a new form of money.
Satoshi told us in the White Paper that Bitcoin was created to free us from the bonds of financial slavery that the governments and banks had held us in for 1000s of years; keeping the rich in their lofty position; while the rest of us struggled to survive. Of course, governments and banks can't deal very well with that sort of freedom. Since there are BILLIONS of dollars in cryptos at this point; outlawing the system just isn't an option. So, there are laws being put into place as the government catches up to give us, in the cryptosphere, protection, and clarification; while they claim "Caesar's Share".
SEC
To date the US SEC has not yet approved or registered any exchange-traded products holding cryptocurrencies or other assets related to cryptocurrencies for listing or trading. However, that department has not been silent on the matter of cryptos. In July 2017, the SEC issued an investor bulletin about ICOs, saying they can be “fair and lawful investment opportunities; but, can be used improperly." Since then the SEC has issued three Cease and Desist in the exposure of three alleged frauds; as well as initiating legal actions against the sponsors of two different ICOs. SEC Chairman Clayton has also expressed concern about market participants who extend to customers credit in the U.S., promising upcoming regulation in this area as well.
CFTC
The Commodity Futures Trading Commission (CFTC) has declared Bitcoin to be a commodity and announced that fraud and manipulation involving bitcoin traded in interstate commerce and the regulation of commodity futures tied directly to bitcoin is under its authority. The CFTC allowed the CME and CBOE to launch bitcoin futures. CFTC also approved a platform for the trading and clearing of virtual currency derivatives for LedgerX, LLC, a swap execution facility and derivatives clearing organization.
IRS, FinCEN
The Internal Revenue Service (IRS) says bitcoin must be treated as property for tax purposes. That means a capital gain or loss should be recorded as if it were an exchange involving property. It should be treated like inventory if it is held for resale, and therefore an ordinary gain or loss recorded. If it is used as payment, it should be treated like currency, but must be converted, and its fair market value checked on an exchange.
At the State level, several U.S. states plan to approve the acceptance or promotion of the use of bitcoin and blockchain technology, while some have already passed them into law according to Bitcoin magazine. These include Arizona (which has formally recognized of smart contracts), Vermont (which has declared the blockchain may be used as evidence in legal proceedings), and Delaware (which has a pending initiative authorizing registration of shares of Delaware companies in blockchain form). As a group, the National Conference of Commissioners on Uniform State Laws voted in July to approve a model act providing for the regulation of digital currency businesses at the state level.
And, in November 2017 the U.S. Treasury Department announced that it planned to review FinCEN’s cryptocurrency practices as they relate to money laundering and terrorism financing risks. FinCEN’s Guidance FIN-2013-G001 declared that “virtual currency does not have legal tender status in any jurisdiction.” Treasury Secretary Steven Mnuchin also said in November he had established working groups at treasury to look at bitcoin and that it is something they will be watching “very carefully.”