Bitcoin

There is no need to report to the IRS if you buy or hold any Bitcoin. Purchasing and holding the bitcoin does not come under the taxable bar.

But if you sell or exchange it for another cryptocurrency or use it to purchase goods or services then it comes under the taxable slab, which means you need to report to IRS.

While filling out your tax return, you must include your digital assets, if you have any. And always consult a tax expert who knows about cryptocurrencies.

Well, investing in crypto is all about the safety and security. And the US government is working in this direction. Rules at state, federal, and FinCEN level centers mainly focus on consumer protection, fraud and money laundering.

New technologies like Blockchain analysis tool, manage risk and protect their customers. Then there is MFA( Multi-factor authentication) in which the customer is granted access to the website only after giving 2 or more evidence to an authentication process.

Before investing, just make sure you are using authorized US Exchanges, consider hardware wallets and stay connected with SEC official website (https://www.sec.gov/).

Just understand that crypto is still developing, so it's better to be more conscious to reduce the risk of fraud.