According to the White House Crypto Czar David Sacks, the impossible tokens and Memecoins are neither securities nor products. Instead, he defines them as “collections.”
“It’s like a baseball card or stamp,” Sachs spoke in an interview with the Fox Business on Thursday, referring to Trump’s explosive Memecoin. “I want to commemorate something, so people buy it.”
Famous venture capitalists commented on long -term discussions on the cryptographic industry. This is a way to deal with various digital assets accurately. Some claim that digital assets are securities that are a trading financial assets such as stocks. But others say they are raw materials that they can buy and sell like products, gold or wheat. The difference in classification has a huge meaning in regulation.
“It’s important to define a market structure because there are several different categories here,” says Sacks.
Under the US tax law, there is already a legal definition of “collection” applied to something like art and bone QUE.
“Capital gain rates are actually getting higher for tax,” says Patrick Sigmon, a taxpayer and partner of Davis Pork at the Law Office.
However, according to Davis Pork’s capital market lawyer and partner Joe Hall, there are no market restrictions applied to collected products under US Securities Law. He immediately pointed out just because the sack was published but called Memecoins and NFTS COLLECTIBLES, which did not change legal status. However, he added that Sacks’s comment suggests that it is not appropriate to regulate these things in a way to regulate securities.
Despite driving out a lot of questions about how encrypted assets are defined, the saxophone hoped that a new regulatory environment would return the encryption business to the United States under Trump. Is finished
“What the industry wants to be more than anything is the clarity of regulations,” he said.
This story was originally introduced on Fortune.com