The CFTC recently ruled that cryptocurrencies are commodities. While this seems more reasonable than classifying them as property as the IRS has, it does nothing to clear up the situation surrounding the proposed regulations of these new markets. How does someone comply with conflicting rules and contradictory statutes? Obeying one rule may mean violating another and vice versa. This creates an impossible situation for those who want to legitimize their participation in this new monetary system.

Allegations of fraud run rampant among critics of crypto.

The lack of regulation is often pointed to as a potential shortcoming of the sector. Yet why do so few point the finger at the real culprits creating such confusion? The regulators themselves have caused this uncertainty. Most of the fraud that does happen, which has been noted to be minor and rare, probably occurs as a result of confusion and inability to comply with ambiguous legal frameworks.

Crypto confusion creates nothing but chaos

Commodity or property – which one is it? How can something classified as two different asset classes possibly hope to be dealt with correctly by those who participate in its marketplace?

While cryptocurrency was founded upon certain libertarian or anarcho-capitalist ideas, some regulatory clarity and consumer controls are not opposed by many within the crypto community.

In fact, many seem to prefer this option to the current state of indecision and mass confusion. Yet so long as this scenario persists, people will continue to shun any proposed rules or regulations for the simple fact that they are too difficult to follow.

It has been widely reported that in 2015, the year after the IRS declared Bitcoin to be a form of property, around 800 people reported income from cryptocurrency to the IRS (though some dispute this figure, let's assume it is accurate for the sake of argument).

Millions of American accounts exist on Coinbase alone. That means that millions neglected to state their profits or losses. Did they do this in a deliberate effort to deceive authorities? Or did they simply have no clue as to how they would go about doing otherwise?

Fraud or failure to comply with unclear guidance?

None of this seems to get taken into consideration when it comes to cryptocurrency.

The average mainstream conversation revolves around allegations of fraud and tax evasion.

Yet the massive fraud perpetrated by megabanks goes unmentioned. The complete and total tax evasion of multi-billion-dollar transnational corporations such as GE seems insignificant for some reason.

Such criticisms only seek to discredit cryptocurrency. These feeble attempts have been occurring since at least 2013. They never seem to change or go away.

As time goes on, these hysterical criticisms will fade into the background. They have persisted for much longer than anyone might have expected. But they grow more and more ludicrous by the day as the reality continues to defy the delusion.
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