Courts vs Congress in Two Crypto Cases
As lawmakers parse the subtleties of crafting legislation that establishes new rules on cryptocurrency taxation, two federal cases brought by industry advocates challenging the IRS’s treatment of digital asset activity are seeking to make tax changes via court rulings, James Matheson reports.
The cases zero in on when the government gets to tax crypto transactions—Jarrett v. United States looks at whether staking reward tokens should be taxed when they are earned or when they are sold, and Rogovy v. Commissioner examines cryptocurrency received during a blockchain protocol split known as a “hard ...