As Trump’s administration is seemingly getting ready to issue a ban on flavored e-cigarettes, prominent cryptocurrency commentator and head analyst at Fundstrat Global Advisors, Tom Lee, said that this is a signal that the White House can issue an “executive order” banning anything, including Bitcoin.
Nothing’s Out of Reach. Can White House ban Bitcoin?
The administration of the United States is apparently preparing to issue a ban on flavored e-cigarettes upon worries of a worsening epidemic of teenage vaping, Bloomberg reported yesterday, September 11th. Can White House Ban Bitcoin?
While seemingly unrelated to cryptocurrencies, prominent Bitcoin bull and head analyst at Fundstrat Global Advisors, Tom Lee, said that this demonstrates how the US administration can issue an “executive order” banning pretty much anything, including Bitcoin.
Now, what’s alarming is that we already know that President Trump’s position on Bitcoin and cryptocurrencies, in general, is not particularly peachy.
Back in July, Trump said that he’s not a fan of Bitcoin and other cryptocurrencies. He also said that their value is highly volatile and that it’s based on thin air. He also mentioned that they can facilitate an illicit activity which includes drug trade and others.
Bitcoin’s Regulatory Statute In The US
Bitcoin’s statute in the US is perhaps one of the most highly discussed topics within the crypto community.
For what is worth, back in 2018, an SEC official said that Bitcoin and Ethereum are not securities. The official said that Bitcoin is not a security because it is decentralized. He outlined that there is no central party whose efforts are a determining factor in the enterprise. The same goes for Ethereum, according to the official.
On the other hand, back in March 2018, the US tax authority, the Internal Revenue Service (IRS), issued a reminder to taxpayers that income from virtual currency is reportable on their very own income tax returns.
The document outlined that virtual currencies, as they are generally defined, are a digital representation of value “that functions in the same manner as a country’s traditional currency.”
In other words, as far as the IRS is concerned, Bitcoin is a form of currency when it comes to taxation.
In addition, however, the same document also states that “general tax principles that apply to property transactions apply to transactions using virtual currency.”
To sum it up, when it comes to taxation, Bitcoin can be viewed as currency, as property, and as pretty much everything that can be taxed.
It’s unclear how a potential ban would be formulated, given Bitcoin’s decentralized nature, especially without any prior definitions and regulatory clarifications. Yet, on paper, Lee is right that nothing’s “out of reach” when it comes to the White House and its executive orders.