The IRS Will Not Tax Unsold Staked Crypto As Income, Sources Say | CryptoGazette
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Some significant events are taking place in the crypto space these days, and Scott Melker addressed a recent one. Check out the latest exciting news below.
What does this mean, and why it’s important?
Blockworks revealed that there is a decision to refund a Nashville couple taxes related to unsold Tezos tokens which is set to clarify the tax treatment of staked cryptocurrency.
In a win for crypto stakers and miners, the notes reveal the following:
“the IRS has offered to refund the couple taxes paid on rewards gained — but not redeemed — from staking on the Tezos blockchain, according to people familiar with the matter.”
The decision has potentially large implications for how proof-of-stake miners and stakers are taxed in the future.
The same online publication notes the fact that the official court filings are expected to be made public on Thursday. A representative from the IRS declined to comment], according to the same article.
Crypto adoption boom
The mass crypto adoption continues and there are more and more events that are taking place which support the move on a healthy path.
In a new report, Fidelity cited two important reasons for which investors should assess Bitcoin separately from all other cryptos.
“Bitcoin’s return profile is driven by two strong tailwinds: the growth of the digital asset ecosystem and the potential instability of traditional macroeconomic conditions.”
The firm also said:
“These return tailwinds are likely to be captured in an easier way with less risk than via the majority of other digital assets.”
Fidelity also addressed the second reason for which BTC is shining – its ability to act as a hedge fund against inflation.
Bitcoin’s mainstream adoption continues and big players are definitely hopping into the crypto train.
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