Crypto tax is broken in America. The PENGU airdrop is a perfect example why. And shows what we can do to fix it. Yesterday I was tagged in a post by this user who got a $250k PENGU airdrop. It's worth $90k today. So they can just sell at a loss and not owe tax, right? Wrong. In the US airdrops are taxed as income at the fair value when you receive them. This user owes income tax on the $250k value of their airdrop. This pushes them into the 35% federal tax bracket meaning they will owe $87.5k in tax on this airdrop. And since they claimed it in Dec. 2024 - they owe that on April 15th with their 2024 tax return. Yikes. Even if they sell today for a $160k loss, they can only use $3k of losses per year against income. And if the price keeps dumping? Double yikes. Nobody should have to potentially pay more in tax than they have in their wallet. In my opinion, taxing crypto airdrops, staking rewards, mining rewards, etc. as income at the value when received is ridiculous. Crypto assets are extremely volatile - especially during their initial allocations. If we wanted fair rules on crypto income tax? At a minimum: Any airdropped non-stablecoin tokens should be taxed when they're sold. Not when they're received. I also think there are great arguments to be made that staking rewards + mined tokens should have the same tax treatment. Tax them when they're sold. But what do you think?