Midterm 01 - Legal Terms (Fall 24)

What was the significance of the 1995 Bernstein v. Department of Justice case for blockchain and crypto regulation?

1995, Bernstein v. Department of Justice ruled that code is considered speech, falling under First Amendment.

Responsibilities of cryptocurrency exchanges under legal regulations

Have the same responsibilities as banks, such as

Known Your Customer - KYC
Anti-Money Laundering - AML

How is Bitcoin classified in terms of regulation, and which entity regulates it?

Bitcoin is considered a commodity (like any currency).

Regulated under Commodity Futures Trading Commission - CFTC

What are the tax implications of buying, holding, or using cryptocurrency?

Buying crypto with cash, holding, or transferring crypto between wallets is not taxable events.

Earning crypto through mining or staking is taxable as income.

Using crypto for purchases or buying other crypto is taxable as capital gains