News - Capital University Law School

Professor Sabu Publishes Cryptocurrency Article

8/22/2021  - 

Professor Arvind Sabu has published his latest article, “Realization’s Vexations: Taxing Cryptocurrency Hard Forks,” in the Spring 2021 issue of Jurimetrics, now available online.

The article argues that cryptocurrency hard forks should not be taxed based on the time of the fork, nor would they then be taxed under existing authorities.  Cryptocurrency hard forks represent innovative experimentation with changes to a cryptocurrency’s protocol in the rich modality of commons-based peer production.  The tax system should not stifle this experimentation and the growth of the cryptocurrency commons by taxing hard forks based on when they occur.  Furthermore, hard forks are unlikely to result in the realization of income under foundational Supreme Court authorities.  The IRS’s ruling on this issue does not alter this conclusion; it illustrates rather than resolves the vexing question of whether a hard fork results in the realization of income.