How states can prepare for the rise of cryptocurrency

Near term: Offer tax guidanceFrom a tax perspective, the term “cryptocurrency” is a bit of a misnomer. To keep up with the rise of cryptocurrency, states must clarify their own reporting requirements. In the near term, other states should also issue detailed guidance regarding the classification and taxability of NFTs and cryptocurrency alike. Long term: Prepare for Web 3.0While proper regulation of cryptocurrency and NFTs is crucial in the near term, greater transformation is coming, and regulators should be prepared. The federal government has started to pave the way for greater regulation of cryptocurrency and NFTs, but it is still early days.