Credit Cards
Financial Goals
Follow Us
Coinbase vs. Why Coinbase Is a Better Choice for Most Crypto Investors, and Especially Beginners
Ethereum and Bitcoin Prices Are Tanking. Here’s Why One Expert Thinks Bitcoin Could Drop Even Lower
Binance.US vs. Coinbase: Crypto Investors Should Go With Coinbase
XRP Is Hard to Buy In the U.S. Here’s What Investors Should Know About Ripple and Its Related Crypto
Bitcoin and Ethereum Prices Slide Amid Economic Uncertainty
How to Evaluate Any Cryptocurrency’s Investment Potential
Ethereum Is Planning a Major Software Update. Here’s What Investors Should Know
Binance.US vs. Gemini: Go With Gemini for Security, Credit Card, and More
Ethereum Price Tracker
Bitcoin Price Tracker
Senior Staff Writer
Alex Gailey is a journalist who specializes in personal finance, banking, credit cards, and fintech. Prior to…
The United States is “behind the eight ball” compared to other leading global economies in providing clarity about how it will regulate digital assets, according to Ripple CEO Brad Garlinghouse. 
And that’s a problem  for investors, he says.
“Without [regulatory] clarity, you’re navigating with uncertainty. It discourages investment, and it certainly discourages investment here in the United States,” Garlinghouse said Thursday at an Axios event on crypto regulation. 

Ripple was founded in 2012 and describes itself as a blockchain-based alternative to SWIFT, the global messaging system that enables bank transactions. The company has been fighting a lengthy legal battle with the Securities and Exchange Commission over allegations that Ripple illegally sold securities through sales of XRP, an altcoin the company uses to facilitate cross-border transactions. The SEC claims that XRP, the sixth-largest cryptocurrency by market, is a security, while Ripple contends that it’s a commodity.

The outcome of the lawsuit could be a turning point for the crypto industry. Ripple could be on the way to victory after clearing a big hurdle this week, but if the SEC wins, most tokens or coins trading on platforms in the U.S. could be deemed securities. That, in turn, could determine how the crypto industry will grow and be regulated. 
So, what does that mean for investors? 
For crypto investors who are wondering what to make of regulatory talks and new developments – including President Biden’s executive order on cryptocurrency, the Federal Reserve’s digital currency report, and the SEC’s recent announcement to regulate crypto exchanges – plenty of experts say crypto regulation is actually a good thing. More regulation could increase market stability and value of crypto and bring new protections to investors.
Cryptocurrency is still in its relative infancy as an asset class, so any new regulation has the potential to make a big impact on investors’ portfolios. But no matter what regulation might look like in the future, here are three things experts say crypto investors should do now to be ready for it:
Sticking to your strategy is likely the best course of action, no matter what’s happening with regulation. Crypto investors should think about their strategy similarly to the stock market — experts say you shouldn’t stop contributing to your Roth IRA or 401(k) over a bad day or headline, so you shouldn’t drastically change your long-term crypto strategy either.

2. Keep Records and Report Gains on Taxes

You should also keep records of your crypto transactions for tax purposes and report any income or capital gains earned through crypto trading. The IRS currently views virtual currency as property, so selling or trading crypto are considered taxable events. You might also want to revisit your previous tax returns if you have any unreported crypto, and consider getting a crypto portfolio tracker to help you stay on top of your transactions. 
Take some steps to safeguard your crypto assets — both from the volatility of the market and potential security threats. Just like with traditional assets, experts recommend diversifying your crypto holdings to lessen the impact that any new regulation may have on individual cryptocurrencies or tokens. You should also consider moving your crypto holdings to a hot or cold wallet to further protect them from scams or hacks. 
Learn all about finances in next to no time with our weekly newsletter.
In your inbox every Tuesday
Thanks for signing up!
We’ll see you in your inbox soon.
I would like to subscribe to the NextAdvisor newsletter. See privacy policy
Tell us what you think
Did this article answer your questions?
Time is Up!
Let us know what questions you still have about this topic or any others.
Time is Up!
Thanks for your feedback!
Before you go, sign up for our newsletter to get NextAdvisor in your inbox.
Thanks for signing up!
We’ll see you in your inbox soon.
I would like to subscribe to the NextAdvisor newsletter. See privacy policy
7 min read
Mortgage News
6 min read
4 min read
8 min read
At NextAdvisor we’re firm believers in transparency and editorial independence. Editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by our partners. We do not cover every offer on the market. Editorial content from NextAdvisor is separate from TIME editorial content and is created by a different team of writers and editors.
Subscribe to our newsletter
Thanks for signing up!
We’ll see you in your inbox soon.
I would like to subscribe to the NextAdvisor newsletter. See privacy policy
Follow us
© 2022 NextAdvisor, LLC A Red Ventures Company All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use, Privacy Policy (Your California Privacy Rights) and California Do Not Sell My Personal Information. NextAdvisor may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Write A Comment