Commentary As the market for cryptocurrency continues to grow the regulators in Washington and Wall Street are increasingly worried. While regulators have blamed cryptocurrency for illegal uses like funding terrorism and funding illicit drug operations, the truth of the matter is that cash is mostly used for illicit activities, not cryptocurrency. The worry is that government will be unable to tax capital gains. In the United States all forms of government, from the feds to state and local municipalities, expect the ability to tax citizens based on data provided from third parties not necessarily data provided from the asset holder or tax payor. Cryptocurrency, which is decentralized, does not have a central clearing unit that reports investor activity to the feds. Finally, with retail investors moving in droves to free trading apps and crypto platforms Wall Street is not only worried they will miss out on lucrative commissions from the …
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