The consensus is that a lack of regulatory clarity from the United States is why the cryptocurrency market is struggling. The reason the United States is most likely taking their time is that they do not know how to tax cryptocurrencies. Currently, whenever the US dollar is used during a trade of goods or services, the United States collects a percent of the sale for taxes. The United States should accept a percentage of a sale in cryptocurrency with the used cryptocurrency; while applying the same tax rules, it would for USD.
The United States should:
- Ban all privacy coins.
- Apply the same rules of taxing USD to Cryptocurrencies.
- Unlike USD, you can monitor every transaction on its ledger. Whenever a wallet receives funds, apply the correct tax code.
- Do not tax deposits from exchanges and use exchanges for wallet’s KYC. Users can only send crypto from an exchange to a wallet owned by them.
- Setup an IOU platform similar to what R3 offers, for paying taxes.
If you want cryptocurrencies to be treated similarly to global currencies, then you should be okay with paying taxes with your cryptocurrencies.