You're pushing the jeans analogy a little further than I intended. Every analogy has its limits.
Is it a security? A commodity? I don't know! But neither does the US government. The CFTC and SEC are fighting a turf war. The CFTC calls them commodities. The SEC calls (most of) them securities. The IRS has created a brand new category called "digital assets". Who is right? If the government can't tell you, I sure can't.
I can infer there must be some legal justification for the current treatment. Even if you think Coinbase is playing fast and loose with the law, the old school players like Fidelity also don't charge sales tax on bitcoin, and I guarantee you they're not going to risk their core business over crypto. I am curious now how their lawyers would answer some of your questions.
Anyways it's been an interesting conversation, thanks for sticking around after the thread died. You've given me some stuff to think about.
Is it a security? A commodity? I don't know! But neither does the US government. The CFTC and SEC are fighting a turf war. The CFTC calls them commodities. The SEC calls (most of) them securities. The IRS has created a brand new category called "digital assets". Who is right? If the government can't tell you, I sure can't.
I can infer there must be some legal justification for the current treatment. Even if you think Coinbase is playing fast and loose with the law, the old school players like Fidelity also don't charge sales tax on bitcoin, and I guarantee you they're not going to risk their core business over crypto. I am curious now how their lawyers would answer some of your questions.
Anyways it's been an interesting conversation, thanks for sticking around after the thread died. You've given me some stuff to think about.