CLARITY Act: Cayman Structures Escape Token Sale Taxes
CLARITY Act crypto bill legislative history shows US token sale proceeds taxed while Cayman/BVI structures avoid levies, reshaping US vs Cayman token issuance tax treatment for digital assets.
SourceAnalysis
CLARITY Act draws sharp lines on US vs Cayman token issuance tax treatment for digital assets as token sale proceeds from a US issuer face immediate taxation while Cayman and BVI structures sidestep those levies entirely, according to timestamp 1:48:50 in the Law of Code FM podcast featuring Jacob Robinson and Miles Jennings. The discussion traces the bill's path through predecessors like RFIA and FIT21, Senate Banking markup, and ongoing efforts by senators including Lummis and Gillibrand to replace enforcement with clear rules for the 70 million Americans holding crypto. Bitcoin markets watch closely as issuers weigh relocation to preserve capital for development rather than handing proceeds to the IRS.
Michael Bacina | | HK Consensus
@MikeBacinaMichael is a near 10 year veteran of web3 law with a particular interest in web3 gaming. He has worked with many leading web3 gaming projects and specialises in offshore structuring and complex contracts. He served as director for 5 years at Blockchain Australia (now Digital Economy Council of Australia) and for Chair in the last 2 years. He has published over 1,500 articles and given over 150 presentations on law and regulation and is the co-author of an upcoming foundational Blockchain and the Law textbook publishing in Q2 by a major legal publisher. Michael also served on the board of the Canadian Australian Chamber of Commerce and on the board of the foundation responsible for Session, a web3 private messenger. Michael is based in the Cayman Islands and will soon be joining NXT.Law as a partner.
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