CCA Cheat Sheet 2026

The 30 highest-yield CCA facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. What is the primary goal of cryptocurrency regulation? → To ensure legal compliance and investor protection
2. Which U.S. agency plays a key role in crypto regulation? → SEC
3. What type of income is recognized when cryptocurrency is received as payment for goods or services? → Ordinary income
4. Which type of wallet arrangement presents the highest operational security risk for a cryptocurrency custodian? → Hot wallet with keys stored on an internet-connected server
5. What does a blockchain transaction include? → Digital signature and transaction details
6. Which best describes a phishing attack in crypto? → Fraudulent attempt to access credentials
7. What is a hash in blockchain? → A cryptographic summary of data
8. What is the FIFO method as applied to cryptocurrency cost basis accounting? → The oldest acquired coins are considered sold first
9. What is a blockchain? → A distributed digital ledger
10. Which factor most significantly complicates the fair value measurement of a non-fungible token (NFT) for financial reporting purposes? → Thin or illiquid markets with infrequent comparable sales
11. Which of the following events does NOT trigger a taxable event for cryptocurrency? → Transferring cryptocurrency between your own wallets
12. An auditor is reviewing an exchange's key generation ceremony. Which finding would be the most significant control deficiency? → Private keys were generated on an internet-connected machine
13. Why is transaction reporting important in cryptocurrency auditing? → To monitor and verify financial activity
14. How does the wash sale rule (IRC Section 1091) currently apply to cryptocurrency in the United States? → It does not currently apply to cryptocurrency as it only covers securities
15. Which cost basis accounting method allows taxpayers to minimize capital gains by designating specific lots of cryptocurrency to sell? → Specific identification
16. Per IRS Revenue Ruling 2019-24, how are tokens received from a cryptocurrency hard fork treated for US tax purposes? → As ordinary income at fair market value when received
17. What is the primary goal of blockchain security? → To ensure data integrity and prevent breaches
18. Which regulation requires financial institutions to report large or suspicious transactions? → Bank Secrecy Act
19. For U.S. federal income tax purposes, what is the official classification of convertible virtual currencies like Bitcoin, as established by IRS Notice 2014-21? → Property, with transactions resulting in capital gains or losses.
20. What is a key component of AML compliance in crypto? → Know Your Customer (KYC)
21. What is a public blockchain? → A permissionless distributed ledger
22. Which U.S. regulatory framework most directly governs the custody of cryptocurrency assets for institutional investors? → SEC Qualified Custodian requirements under the Investment Advisers Act
23. What is the minimum holding period required for cryptocurrency gains to qualify as long-term capital gains in the US? → More than 1 year
24. When is an airdrop of a new cryptocurrency token generally taxable to a US recipient? → When the taxpayer receives the tokens and has dominion and control over them
25. For U.S. tax audit purposes, which cryptocurrency transaction type triggers a taxable realization event? → Exchanging one cryptocurrency for another on a DEX
26. What is the role of regulatory audits in cryptocurrency firms? → To review compliance and internal processes
27. What is the function of a block in blockchain? → Holds transaction records and hashes
28. What is a 51% attack? → A majority control over blockchain consensus
29. Under FinCEN guidance, cryptocurrency exchanges operating as MSBs must retain records of customer identity verification for a minimum of how many years? → 5 years
30. What was the key limitation of the indefinite-lived intangible asset treatment for cryptocurrency under old US GAAP? → Impairment losses were permanent and could not be reversed