Abraham Sutherland

The IRS is wrong. New cryptocurrency tokens from staking are not taxable income. Congress can and should fix the tax code to make this clear. Keep taxation fair -- end overtaxation and the compliance nightmare. My latest in @taxnotes – taxnotes.co/3DllssT

Huge thank you to our co-plaintiffs against the Tornado Cash sanctions. They are heroes for standing up and building a broad case against OFAC: @TrustlessState who got dusted and said bring it on; Developer Patrick O'Sullivan who simply hoped to get paid his salary with privacy; and our John Doe who supported the defense of Ukraine on chain while dodging GRU countermeasures.

If you work in crypto, take time to read the complaint in Lewellen v. Garland -- coincenter.org/app/uploads/20…

The crime of "money transmitting" is not what Biden's Justice Department says it is. Time to straighten this out.

Today, I’m taking a stand against the Biden administration’s unjust crackdown on crypto development. I’ve filed a lawsuit against the DOJ to challenge their flawed and unjust interpretation of the law. My work on Pharos—a non-custodial protocol for public goods fundraising—reflects the kind of innovation that many in the crypto space are striving for. It’s a tool for trustless and transparent crowdfunding, empowering users without intermediaries. Yet developers like me are facing baseless legal risks. The DOJ’s broad interpretation of money transmission laws threatens the ability to build freely. This isn’t just about Pharos; it’s about the future of cryptocurrency innovation in America. This lawsuit is about ensuring innovators can create without fear and that laws aren’t misused to hold back progress. For too long, the Biden administration has used a lack of clarity to scare builders away from new technology or force them to leave the USA. That needs to end. You can read more about this lawsuit and why it's so important from @CoinCenter, who are supporting me every step of the way. coincenter.org/coin-center-fe…

@walterkirn I think it's Marshall, North Carolina

Can anyone tell me which town this is? Thank you.

@BillHughesDC @jerrybrito @valkenburgh Back online! We’re safe, thanks. House is ok too.

Anyone hear from @abesutherland ? He and his family ok? Cc: @jerrybrito @valkenburgh

@ted_livingston @tushar_jain You are correct, but only because that approach to taxation is wrong and not defensible.

@tushar_jain It a world where there are no taxes I agree. But in a world where there are taxes half my staking rewards leave me and go to the government. So in effect even if everyone stakes, the collection of taxes is diluting them and transferring that value to the government. Do you agree?

There are a lot of incorrect claims that because stock issuance is a cost for corporations, token issuance is a cost for blockchains. The difference is nuanced but the economic implications of token issuance to stakers is very different than share issuance to employees. The big difference is that any token holders can stake and participate pro rata in the creation of new tokens. If you stake your tokens, you cannot be diluted. All shareholders cannot participate in share issuance. There is nothing you can do as an Apple shareholder to avoid dilution from share issuance. L1 token issuance to stakers is only an expense to unstaked tokens. In a scenario where 100% of tokens are staked, staking emissions are more economically similar to a stock split than new issuance.

@tushar_jain It not only violates tax principles to tax those tokens, it means people are taxed on nonexistent gains. papers.ssrn.com/sol3/papers.cf…

@tushar_jain This analysis is correct: the cost is borne by non-stakers. The erroneous view is not harmless -- it's dangerous because it leads to the IRS's indefensible opinion that such new tokens are "income." If 100% stake, then stakers have zero economic gain from staking.

🚨Congratulations to Reps @RepDrewFerguson and @WileyNickel for championing a critical & common-sense clarification of existing tax law to ensure tax fairness for millions of stakers (and miners!). Today they introduced a bill that would affirm what @TeamPOSA has known for years and been fighting for: block rewards should be taxed at the time of sale, not at the time of block creation.

Sensible taxation of cryptocurrency.

@FFMEC2 tz1g2sW8fLzT8c5yDypPFBxQdcnPg4MbnxqY

AIRDROP ALERT drop your tez wallet for a $goat airdrop Theres is no goat token is just an ilegal goat , no more further explanation

Tax code 6050I report with @TeamPOSA also here: static1.squarespace.com/static/62f147f…

Reporting "digital asset" receipts under tax code section 6050I -- I walk through the elements of the statute in this article, ssrn.com/abstract=41377…

I address tax code section 6050I's apparent consequences for DeFi and NFTs here: decential.io/articles/defi-…

To help explain how tax code section 6050I will (and won't) work for "digital assets," I use examples involving physical cash in this article: coincenter.org/congress-takes…

Here is our complaint @coincenter explaining why the amended 6050I is unconstitutional. This case is currently on appeal on a threshold question. drive.google.com/file/d/1wMRKLB…

New crypto tax reporting obligations took effect on Jan 1. If you receive $10k or more in crypto you now have an obligation to report the transaction (including names, addresses, SS numbers, etc.) to the IRS within 15 days under threat of a felony charge.