The OP law link clearly amends the section to add ‘digital asset’, so someone somewhere thought this section didn’t always apply to crypto transactions.
The trade or business caveat does seem important, but who says ‘trading digital currency’ is always a ‘personal activity’? I’d bet good money the IRS has a different opinion.
Personally, my takeaway is that if someone is regularly getting $10k transactions in crypto, they can probably hire good accountants and lawyers to figure this out for them, so I’m not too worried. Can wait for the clarifying court opinion to come out.
The OP law link clearly amends the section to add ‘digital asset’, so someone somewhere thought this section didn’t always apply to crypto transactions.
The trade or business caveat does seem important, but who says ‘trading digital currency’ is always a ‘personal activity’? I’d bet good money the IRS has a different opinion.
Personally, my takeaway is that if someone is regularly getting $10k transactions in crypto, they can probably hire good accountants and lawyers to figure this out for them, so I’m not too worried. Can wait for the clarifying court opinion to come out.