On Aug. 25, 2023, the Internal Revenue Service (IRS) and the Treasury Department issued proposed regulations (the Proposed Regulations) regarding the sales or exchanges of digital assets, including cryptocurrency. The Proposed Regulations relate to both information reporting requirements and the determination of amount realized, basis, and backup withholding.
On Sept. 25, 2020, the SEC issued a No-Action Letter to FINRA, in response to a previously issued Joint Statement by the SEC and FINRA. This No-Action Letter detailed how broker-dealers could operate alternative trading systems that trade digital assets without garnering enforcement action from the SEC for not meeting the custody requirements required under
The Securities and Exchange Commission’s (SEC) Office of Investor Education and Advocacy issued an Investor Alert in January that urged investors to use caution before investing in “so-called initial exchange offerings” (IEO) through online digital asset trading platforms.
The regulator noted that IEOs are a recent development in the rapidly evolving digital asset space and