In the United States, occasionally, court decisions set a precedent for future interpretations of the law. Due to such circumstances, Bitcoin just became officially considered “money” under a US federal court ruling.
However, the Director of Communications at a leading non-profit focusing on cryptocurrency policy, says this is not a big deal. Here’s why it isn’t.
Bitcoin Considered “Money” In United States Federal Court Case, Community Celebrates
Each passing day, a new breakthrough in Bitcoin is happening behind the scenes, yet the price of the cryptocurrency cannot break free from its trading range.
BTCUSD Sideways Trading Range | Source: TradingView
In 2020 alone, the asset survived the Black Thursday market collapse, had its block reward halving, and more. It has been compared to gold by hedge fund manager Paul Tudor Jones and institutions are taking notice.
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Rumors of PayPal and Venmo supporting the cryptocurrency and more recently, VISA pledging to better embrace the asset it credits with the birth of digital currencies.
Nations like China and soon the US seek to mimic its design to usher in the future of finance.
Now, according to some takes in the media and the cryptocurrency community, Bitcoin is officially considered “money” under US law. But here’s why they’ve got it all wrong.
Crypto Policy Expert Clarifies That This Is Not At All A Big Deal
According to a Bloomberg Law piece published on Federal court case United States v. Harmon, a court ruling deemed Bitcoin as “money.”
Mainstream crypto outlets were quick to report on how this would change the game for crypto, and the community rejoiced. Not surprisingly, speculation ran wild and had crypto investors thinking this would have an impact on everything from adoption to tax reporting.
this just means that if you’re a bitcoin intermediary for someone living in DC you need a money transmitter license https://t.co/lgBvUUpA0S
— Neeraj K. Agrawal (@NeerajKA) July 24, 2020
Neeraj K. Agrawal, Director of Communications for Coin Center says they’re all wrong, and that there are numerous “bad takes” floating about the web.
Agrawal knows the impact of crypto-related policy. Coin Center is a “leading non-profit focused on the policy issues facing cryptocurrencies.”
“We engage in research, educate policymakers, and advocate for sensible regulatory approaches to this technology,” their website reads.
The Director of Communications for the non-profit says that all this means, is that “if you’re a bitcoin intermediary for someone living in DC you need a money transmitter license.”
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Court rulings certainly do set a precedent in many circumstances. And as Agrawal claims, the only precedent set here is that this information will be used to implicate criminals who transact with Bitcoin in Washington DC.
He clarifies this changes nothing in terms of tax reporting and capital gains. Nor does it mean that suddenly Bitcoin will be accepted at a retailer near you.
So before you join on the preemptive celebration taking place across the crypto space, consider the comments from a crypto industry leader in policy and don’t believe everything you read in the headlines.