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As the Trump administration is seemingly getting ready to issue a ban on flavored e-cigarettes, prominent cryptocurrency commentator and head analyst at Fundstrat Global Advisors, Tom Lee, said that this is a signal that the White House can issue an executive order banning anything, including Bitcoin.Â
Nothingâs Out of Reach
The United States is apparently preparing to issue a ban on flavored e-cigarettes upon worries of a worsening epidemic of teenage vaping, Bloomberg reported yesterday, September 11th.Â
While the move is seemingly unrelated to cryptocurrency, prominent Bitcoin bull and head analyst at Fundstrat Global Advisors, Tom Lee, said that this demonstrates that a president can issue an executive order banning pretty much anything, including Bitcoin.Â
This is un-related but shows White House can issue an âexecutive orderâ banning anything. And could even ban bitcoin. Not expecting it. But with current White House, there is ânothing out of bounds nor out of reachâ@CNBC @angelicalavito#vaping #bitcoinhttps://t.co/gMZur1M4Cm
â Thomas Lee (@fundstrat) September 11, 2019
Whatâs alarming is that we already know that President Trumpâs position on Bitcoin and cryptocurrencies in general is not particularly peachy.Â
Back in July, Trump said that heâs ânot a fan of Bitcoin and other cryptocurrenciesâ, adding that they are volatile and âbased on thin airâ. He also claimed that they facilitate illicit activity including drugs.Â
Bitcoinâs Regulatory Status in the US
Bitcoinâs regulatory status in the US is perhaps one of the most highly discussed topics within the crypto community.Â
Back in 2018, an SEC official said that Bitcoin and Ethereum were not securities. The official said that Bitcoin was not a security because it is decentralized and there is no central party whose efforts are a determining factor in the enterprise. The same goes for Ethereum, according to the official.Â
On the other hand, back in March 2018, the U.S. Internal Revenue Service (IRS) issued a reminder to taxpayers that income from virtual currency was reportable on their income tax returns.Â
The document noted that virtual currencies, as they are generally defined, are a digital representation of value âthat functions in the same manner as a countryâs traditional currency.â
In other words, as far as the IRS is concerned, Bitcoin is a form of currency when it comes to taxation.Â
The document also stated that âgeneral tax principles that apply to property transactions apply to transactions using virtual currency.â
To sum it all up, when it comes to taxation, Bitcoin can be viewed as a currency, as property, and as pretty much anything else that can be taxed.Â
Itâs unclear how a potential ban would be formulated, given Bitcoinâs decentralized nature, especially without any prior definitions and regulatory clarifications. Yet, on paper, Lee is right that nothingâs âout of reachâ when it comes to the White House and its executive orders.Â
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.