A bipartisan group of 20 US legislators in Washington has requested the Internal Revenue Service (IRS) to update its 2014 guidance on cryptocurrencies. The new update is expected to be made in the coming weeks.
In this new development, legal issues relating to the adoption and use of cryptos are particularly a point of interest, in which at least three bills are being considered for this purpose.
With regards to Libra, Facebook had recognized the favorable framework of regulations in regions like Japan and Switzerland which prompted the social media giant to initiate the developmental process of its cryptocurrency in Switzerland. This, many US residents believe is a setback for the country in some ways.
The Unacceptable Bitcoin
Altho/ugh Bitcoin and other cryptocurrencies show great prospects and usability, they have also been able to gain disrespect among financial agencies which believe digital currencies like bitcoin are used and adopted for its anonymity of transaction and use especially among drug dealers and scammers. This explains why regulations are not the only issues faced with cryptocurrencies.
Not Everyone Is Happy
The Internal Revenue Service (IRS) in 2014 proposed to treat Bitcoin as an investment property in the same category as stocks or bonds. This subjected the crypto to capital-gain taxes and U.S. taxpayers were to report every gain or losses on the digital currency.