Investors await clarity on crypto taxes

The recently released final draft of the U. S. Reconciliation Bill aims to subject investors in the crypto space to a complex tax rule based upon the constructive sales concept.
Cryptocurrency users are expected to pay taxes without even selling their crypto assets under the proposed draft which could be passed as law as of 1 January 2022.
The traditional tax rules for reporting cryptocurrency gains to date do not typically tax crypto gains until they are realized. Investors realize cryptocurrency capital gains when they actually cash out or convert one coin into another.
But, according to the constructive sale concept, when investors don not actually trade coins, they could be subject to taxing according to the anticipated financial position.