Source
In January, financial regulators stepped up warnings about investment in cryptocurrencies like bitcoin.
The Federal Reserve warned in January that investors who buy them are taking on significant risks and could lose everything. But the Securities and Exchange Commission has declined to regulate bitcoin and other cryptocurrencies, leaving it up to the states to do so.
The IRS has also said that they will not be able to recognize bitcoin as a legal method of payment. The IRS has issued its own guidance on taxes, warning that digital currency could be taxable.
