But most crypto is not comparable to stocks. It's comparable to currency
Gary Gensler, the boss of the SEC, would probably disagree. He's calling most of it (with the possible exception of Bitcoin and Ethereum) a security (read "stock").
As to your point about "currency" -- it's not _really_ that either, chiefly because of the tax treatment in most countries that have crypto-regulation. If you buy some foreign currency, it goes up, and you sell it, you are NOT taxed a capital gain.
If you buy crypto, or stock, or bonds, or real estate, it goes up, and you sell it, then you are liable for CGT. This makes crypto more akin to a digital asset, or a commodity.
I can see where they are coming from. In the long term, the value for most crypto as a technology is it's way to decentralize ownership. But for the purpose of making an investment decision in cryptos right now, the vast majority of them really only derive their value from their usefulness in transactions.
If you buy some foreign currency, it goes up, and you sell it, you are NOT taxed a capital gain.
Am I misunderstanding something? I thought Forex gains were taxed via the 60/40 rule.
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Gary Gensler, the boss of the SEC, would probably disagree. He's calling most of it (with the possible exception of Bitcoin and Ethereum) a security (read "stock").
As to your point about "currency" -- it's not _really_ that either, chiefly because of the tax treatment in most countries that have crypto-regulation. If you buy some foreign currency, it goes up, and you sell it, you are NOT taxed a capital gain.
If you buy crypto, or stock, or bonds, or real estate, it goes up, and you sell it, then you are liable for CGT. This makes crypto more akin to a digital asset, or a commodity.
I can see where they are coming from. In the long term, the value for most crypto as a technology is it's way to decentralize ownership. But for the purpose of making an investment decision in cryptos right now, the vast majority of them really only derive their value from their usefulness in transactions.
Am I misunderstanding something? I thought Forex gains were taxed via the 60/40 rule.
Stock is only one kind of security. Security is anything you can trade. A dollar bill is a security, for example.