Ripple CTO Differentiates Crypto Staking from Traditional Income Amid IRS Tax Ruling
- The IRS confirms staking rewards are taxable upon receipt, sparking debate within the crypto industry.
- David Schwartz asserts that crypto staking involves creating new assets, not receiving existing property.
- Investor Joshua Jarrett’s lawsuit challenges the IRS’s classification of staking rewards as taxable income.
Ripple CTO David Schwartz has weighed in on the growing debate over crypto staking and taxation following the U.S. Internal Revenue Service (IRS) ruling that staking rewards are taxable upon receipt.
Commenting under a tweet regarding the IRS’s decision that crypto staking is taxable, Schwartz distinguished staking from traditional income amid community debate. He emphasized that staking involves creating new assets rather than receiving property from others.
Staking vs. Dividends: Key Differences
Critics, including Nido, argue that staking rewards are akin to earning interest on deposits or stock dividends. However, Schwartz countered that interest or dividends involve existing value, and staking generates entirely new tokens, making it a fundamentally different process.
“Staking is creating property, not receiving it from someone else …
The post Ripple CTO Differentiates Crypto Staking from Traditional Income Amid IRS Tax Ruling appeared first on Coin Edition.
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Ripple CTO Differentiates Crypto Staking from Traditional Income Amid IRS Tax Ruling
- The IRS confirms staking rewards are taxable upon receipt, sparking debate within the crypto industry.
- David Schwartz asserts that crypto staking involves creating new assets, not receiving existing property.
- Investor Joshua Jarrett’s lawsuit challenges the IRS’s classification of staking rewards as taxable income.
Ripple CTO David Schwartz has weighed in on the growing debate over crypto staking and taxation following the U.S. Internal Revenue Service (IRS) ruling that staking rewards are taxable upon receipt.
Commenting under a tweet regarding the IRS’s decision that crypto staking is taxable, Schwartz distinguished staking from traditional income amid community debate. He emphasized that staking involves creating new assets rather than receiving property from others.
Staking vs. Dividends: Key Differences
Critics, including Nido, argue that staking rewards are akin to earning interest on deposits or stock dividends. However, Schwartz countered that interest or dividends involve existing value, and staking generates entirely new tokens, making it a fundamentally different process.
“Staking is creating property, not receiving it from someone else …
The post Ripple CTO Differentiates Crypto Staking from Traditional Income Amid IRS Tax Ruling appeared first on Coin Edition.
Read More