Crypto Rules Heat Up This Summer

The summer is almost here, but the buzz in Washington is already intense. A House committee that deals with taxes has opened a hearing about how digital money should be taxed, and the questions are aimed at filling gaps in current law. No harsh words or political attacks were exchanged, but the discussion shows that a lot of work remains before any new tax rules can be passed. At the same time, the Commodity Futures Trading Commission released a draft proposal to tighten rules on prediction markets. The plan includes how the agency will decide what counts as a game and which contracts are subject to federal oversight. The public is invited to give feedback, so the comments could shape future regulation.Former regulators are also involved. Gary Gensler, who helped write Dodd‑Frank, filed a brief in lawsuits about prediction markets, arguing that many of those contracts should not be treated as gambling. Yet the CFTC is still suing New Mexico, insisting that sports‑related prediction markets are swaps and should not fall under state gaming laws. On the securities side, the Securities and Exchange Commission is still working on its innovation exemption proposal. The release has been delayed, and experts worry about how it will be structured. Meanwhile, a high‑profile crypto founder lost an appeal of his 2023 fraud conviction. An appellate panel agreed that the trial judge had acted within his authority, ending the founder’s chance for a new trial. These events signal that regulation of digital assets is becoming a top priority, and lawmakers will need to cooperate if they want clear rules that work for everyone.