> The best argument in favor of the incoming administration’s proposal is simply that crypto is a different kind of asset, not money itself but like money in some ways. If you “sell” your money, say to buy a car, the government does not tax you on that transaction, claiming that you earned a “capital gain” on your money. So why should you be taxed on the capital gains if you used crypto to buy a car?
What if you paid for the car in pesos, instead of dollars, would you have a capital gains tax (honest question, I don't know how it works in the USA)? Nobody would say pesos aren't money.
(For the special case of dollars, it makes sense that there's no "capital gain" to tax: since the "capital gain" is measured in dollars, the gain or loss on your dollars is always zero.)
What if you paid for the car in pesos, instead of dollars, would you have a capital gains tax (honest question, I don't know how it works in the USA)? Nobody would say pesos aren't money.
(For the special case of dollars, it makes sense that there's no "capital gain" to tax: since the "capital gain" is measured in dollars, the gain or loss on your dollars is always zero.)