This session featured a panel of experts discussing the evolving landscape of cryptocurrency regulation and taxation, particularly in the U.S. Tiffany Smith emphasized how the SEC broadly views most crypto assets as securities, enforcing financial regulations that entrepreneurs must navigate. Charles “CJ” Kelly highlighted the IRS’s aggressive tax enforcement efforts, stressing the importance of accurate tax reporting and the risks of non-compliance, including audits and fraud accusations. Del Wright, a law professor and former DOJ tax attorney, underscored the complexity of crypto law, advising entrepreneurs to seek early legal counsel to avoid regulatory pitfalls. Joe Cutler discussed blockchain’s promise of decentralization versus the reality of centralized exchanges, warning against oversimplified regulatory assumptions and emphasizing nuanced legal analysis of tokens and protocols. The panel also addressed practical concerns, such as business domiciling strategies and international tax implications, with examples like Puerto Rico’s Act 60. Throughout, the experts stressed education, transparency, and proactive compliance as essential for crypto participants to thrive amid regulatory uncertainties. The session concluded with advice on tax basis determination for crypto transactions and the critical need for investors to maintain control over their private keys. Overall, the discussion balanced optimism about innovation’s potential with sober reminders of the regulatory and tax responsibilities crypto users face.
