US Crypto Regulations Update: Tax Bills and Prediction Markets Take Center Stage

The US government is moving quickly on crypto regulations. Last week saw significant developments in several areas, including tax treatment and prediction markets.

A House Ways and Means Committee hearing on digital asset tax bills was notable for its bipartisan tone and lack of conflict. The committee discussed the different dimensions of the crypto tax debate but made it clear that there is still a lot of work to be done before legislation can move forward.

The Commodity Futures Trading Commission (CFTC) has published a proposal outlining how it intends to oversee prediction markets, including a definition of 'gaming' that determines which contracts fall under federal swap regulation. The regulator is seeking public comment on the proposal.