Crypto-Tuesday January 24, 2023 – Money serves three purposes: medium of exchange, preserving labor value over time and measuring goods and services across an economy.
The promise of Crypto was to provide all three purposes. However, Cryptocurrency still needs acceptance from people in order to work as a medium of exchange like traditional currencies do. That’s why the El Salvador move looked so encouraging. Using Crypto as a medium of exchange, rather than a store of value. That experiment hasn’t worked…yet.
Governments around the world have ratcheted up regulatory controls on Cryptocurrency. Our own Department of Justice proposed three regulatory and legislative priorities for combating cryptocurrency crime, including amending the anti-tip-off law for financial institutions to include digital assets, strengthening penalties and broadening the application of criminal laws governing operation of an unlicensed money transmitting business, and increasing limitations period to 10 years for all crimes that involve transfer of digital assets.
The White House also committed additional priorities such as aggressive investigations by SEC Chair Gary Gensler, as the SEC battles with the Commodities Futures Trading Commission to be the regulatory king in the Crypto space.
Attorney Steven A. Leahy looks at the past, present and future of money on Today’s Tax Talk.