State Crypto Taxation Can Draw From Financial Institution Rules

Guidance is needed on state corporate income tax challenges stemming from cryptocurrency transactions. Taxpayers face many questions related to how they should apportion revenue received from myriad cryptocurrency transactions, such as mining and staking revenue, sales of cryptocurrencies through a broker dealer or a licensed exchange, services provided to foundations or blockchains, and revenue from yield farming to name a few.

In the two years since publication of our last article on this topic, state governments have not released much additional guidance, and guidance from the federal government has not been specific to state tax treatment.

States can borrow substantially ...