To stay in compliance with the current laws we need to know and understand those laws. So, let's take a look at the current US regulations regarding Bitcoin as of August 2018.
We here at CyrptoDetail love our Bitcoin. It is the "King of the Cryptos" simply due to its innovation and liquidity. Since its creation in 2008 Bitcoin was freely traded back and forth between users without hinderance. But, as we all knew would happen, the government took notice and simply had to try to find a way to regulate what was designed to be unregulated. However, as the government has imposed its various statutes and regulations; the cryptosphere has adapted, survived, and even thrived.
But, to stay in "compliance" with the current laws we need to know and understand those laws. So, let's take a look at the current US regulations regarding Bitcoin as of August 2018.
The Government Entities and Their Positions
The Commodity Futures Trading Commission (CFTC) has classified Bitcoin and other virtual currencies as commodities. Conversely, the Securities and Exchange Commission (SEC) has stated that Bitcoin itself is not a commodity or security (However, this entity strongly regulates tokens as the virtual equivalent of fiat stock shares). The SEC also heavily monitors and regulates exchanges; and, has in fact, begun criminal investigations and prosecutions of a number of Bitcoin's largest traders using their profiles on sites like LocalBitcoins. So, it seems the SEC has its limits.
The Internal Revenue Service (IRS) classifies virtual currencies ("VCs), including BTC as describes Virtual Currencies (VCs) as “a digital representation of value that functions as a medium of exchange, a unit of account, and /or a store of value [and] does not have legal tender status in any jurisdiction.”
What does all of that legalese mean?
The IRS thinks of Bitcoin like a savings bond that cannot actually be given a set value as it is not actually "legal tender". Confused yet? Try reading the US tax code sometime. In short, the IRS considers Bitcoin to be much like an "investment". And, as we all know (or, we should since we say that all the time here on CryptoDetail), Bitcoin is NOT an investment (somebody PLEASE send the IRS a copy of the Bitcoin White Paper).
The National Automated Clearing House Association (NACHA) uses ACH transfers Clearing House (ACH) to move trillions of fiat dollars in billion of electronic transactions each year. As such NACHA is a Bitcoin competitor. So, that entity classifies BTC (and other VCs) as having "no claim on the issuer" (meaning, again, "not legal tender").
Under the Electronic Fund Transfer Act (EFTA) the FDIC does not insure Bitcoin transfers. This means that The FDIC classifies Bitcoin as something outside of their authority as outlined in the EFTA. Again, "not legal tender".
The US Constitution gives the Congress the right to "regulate commerce". So, we can be sure that there will be future regulation at the federal level.
Some have said this regulation will be an outright ban on Bitcoin and other cryptos under the Stamp Act. That law was written just after the US civil war to prevent anyone from minting money of any kind.
Who accepts BTC
However, we here at CryptoDetail disagree with the FUDsters. We believe that Bitcoin and its brethren have grown too large for such an attempt. There are billions of US Dollars tied into Bitcoin alone. And, it is not just the "hackers" or the "black marketeers" who use it. Amazon, Hotels. com, Gyft, IBM, and Microsoft are just a few US-based companies who accept BTC. There are hundreds, if not thousands more, who either accept BTC and /or pay some portion of their employees paychecks and /or retirement in that currency.
So, regardless of any possible attempt at a ban (wouldn't Jaime Dimon love that?) we here at CryptoDetail feel that the US government will continue its careful assessment of filling its own coffers with taxes it can impose.