@bishoplongfellow
US IRS treats crypto as property, taxing sales, trades, and income as capital gains (short-term up to 37%, long-term 0-20%). This deters frequent trading, encourages long-term holding to lower rates, and boosts record-keeping. Non-reporting risks audits, penalties, and interest, reducing risk appetite and compliance costs. From 2025, broker Form 1099-DA enhances oversight, curbing evasion but raising privacy fears in DeFi.
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