MicroStrategy CEO and Bitcoin supporter Michael Saylor has agreed to the largest income tax settlement deal in Washington D.C.’s history.

According to reports, Bitcoin (BTC) advocate Michael Saylor and his software company MicroStrategy reached a $40 million payment package with the state to settle a tax evasion lawsuit.

The case, led by Attorney General Brian L. Schwalb, focused on Saylor’s residency and tax returns between 2005 and 2021. While Saylor claimed he lived in Florida, city attorneys had reason to believe he resided in a luxury apartment and on yachts within the District of Columbia’s jurisdiction.

Both MicroStrategy and Saylor denied any tax evasion violations as per the terms of the settlement deal.

Saylor’s tax issues in the Capital come amidst ongoing debates within the cryptocurrency community. Early last month, MicroStrategy’s founder stated that the U.S. SEC would deny spot Ethereum (ETH) ETFs.

Saylor’s reasoning stemmed from uncertainties around the securities status of cryptocurrencies. According to him, altcoins like Cardano (ADA), Ethereum, and Solana (SOL) are all unregistered crypto asset securities. This perspective aligns with SEC Chair Gary Gensler’s stance.

Although Gensler has not made such a definitive statement, he insists that most cryptocurrencies fall under existing financial laws, and digital asset service providers must register with the regulator to operate legally.

Weeks after Saylor’s remarks, the SEC announced the initial stage of spot ETH ETF approvals. Experts suggest that these Ether-backed products might trade on national exchanges before the year’s fourth quarter.

“Good sign. Prob see rest roll in soon. Then prob one more round of fine-tune comments from Staff. End of June launch a legit possibility altho keeping my o/u date as July 4th.”

Analysts, including Bloomberg’s Eric Balchunas and James Seyffart, noted that issuers have removed all staking language from updated filings, and S-1 forms remain under review.

These updates have sparked speculation regarding the SEC’s view on Ethereum as a blockchain operating under the proof-of-stake consensus model. The debate continues on whether the SEC will ever recognize crypto staking as a non-security instrument.

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