Safe Harbors for Crypto-Currency Trading and Investment
Crypto[1] is an extraordinary growth market with profound implications for foreign investment in the United States. The current U.S. administration has made a clear, specific, and demonstrable commitment toward development of crypto during 2025. And there is no subject that is more important in encouraging U.S. crypto market expansion than the tax framework that is needed to ensure safe harbors for foreign investment.
Safe harbors are intended to provide foreign investors with certainty as to the statutory interpretation, avoid confusion, and ensure that they do not inadvertently find themselves in a U.S. trade or business. Code[2] Section 864(b)(2)[3] provides trading safe harbors for securities and commodities. They were enacted to…
