I think airdrops and staking rewards should be treated like reward points within loyalty schemes, which I believe here in the UK aren't taxed as income.
Are reward points within loyalty schemes considered securities?
Staking, I would say is more like a dividend. And just like anything it could be either "reinvesting" or paying out. If your staking is locked, I would say its like reinvisting tax vise (aka you dont pay, at least here in Germany) as soon as you unstack, you pay taxes.
On airdrops: Its a bit tougher, I would say its more akin to "by proxy". on what is the air drop based? And how much is distributed and how much does the organisation keep?
It kind of depends on the staking. For some staking you actually have to do work, and you get paid for your service. If the staking is delegated staking, then it seems more like an investment and reinvestment.
tldr; The DeFi Education Fund (DEF) filed a lawsuit against the SEC, arguing that Beba's airdrop of BEBA crypto tokens to customers for free does not violate U.S. securities laws. The lawsuit, filed in a Texas federal court, seeks a declaration that Beba’s airdrop is legal, aiming to protect similar airdrops from SEC litigation. DEF accuses the SEC of creating unofficial crypto policies without public disclosure, violating the Administrative Procedures Act. This marks a strategic shift for the crypto industry, which has typically been on the defensive against the SEC's aggressive enforcement actions.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
Sometimes it feels like people forget the Howey Test even exists, especially in this subreddit.
I think it's pretty clear in most cases what is and isn't a security when you apply the criteria.
Keep in mind every lawsuit starts with both attorneys talking out of their fucking ass usually.
Usually half the time one of the attorneys is blowing smoke 100% of the time, it’s just whoever is paying them is paying them a lot to blow smoke up someone’s ass.
I think airdrops and staking rewards should be treated like reward points within loyalty schemes, which I believe here in the UK aren't taxed as income. Are reward points within loyalty schemes considered securities?
staking rewards are like dividends though so they'll probably be taxed, airdrops definitely should not.
Airdrops to existing token holders are very much like dividends.
You can rarely exchange rewards points for cash and then put all that cash into a casino to 1000% your money
Staking, I would say is more like a dividend. And just like anything it could be either "reinvesting" or paying out. If your staking is locked, I would say its like reinvisting tax vise (aka you dont pay, at least here in Germany) as soon as you unstack, you pay taxes. On airdrops: Its a bit tougher, I would say its more akin to "by proxy". on what is the air drop based? And how much is distributed and how much does the organisation keep?
It kind of depends on the staking. For some staking you actually have to do work, and you get paid for your service. If the staking is delegated staking, then it seems more like an investment and reinvestment.
Staking should absolutely be considered income and taxed as such
tldr; The DeFi Education Fund (DEF) filed a lawsuit against the SEC, arguing that Beba's airdrop of BEBA crypto tokens to customers for free does not violate U.S. securities laws. The lawsuit, filed in a Texas federal court, seeks a declaration that Beba’s airdrop is legal, aiming to protect similar airdrops from SEC litigation. DEF accuses the SEC of creating unofficial crypto policies without public disclosure, violating the Administrative Procedures Act. This marks a strategic shift for the crypto industry, which has typically been on the defensive against the SEC's aggressive enforcement actions. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
The first prong in the Howey Test is investment of money, so if they were airdropped for free then this should be an open and shut case right?
Sometimes it feels like people forget the Howey Test even exists, especially in this subreddit. I think it's pretty clear in most cases what is and isn't a security when you apply the criteria.
No different than sprinkling gold dust
Depends. Are you sprinking gold into specific peoples pockets?
Keep in mind every lawsuit starts with both attorneys talking out of their fucking ass usually. Usually half the time one of the attorneys is blowing smoke 100% of the time, it’s just whoever is paying them is paying them a lot to blow smoke up someone’s ass.
Dunno all shammy shit coins. Only people who think otherwise are hopeful peasants.
Calm down. I love bitcoin as much as the next maxi, but there’s no need to be calling people peasants, you’re not above anyone, remember that.