Expanding tax rules are reshaping how crypto investors track transactions, moving far beyond simple exchange exports. The IRS has already begun receiving gross proceeds data on Form 1099-DA for the 2025 tax year, and basis reporting will phase in for assets acquired after 2025 and held with the same broker. But for anyone using self-custody, decentralized finance, staking, or multiple exchanges, the data provided by brokers is incomplete. Wallet-level recordkeeping is now essential, and the IRS’s move toward account-by-account basis identification from 2025 makes tracking even more critical.
DeFi and NFT activity add layers of complexity that on-chain records alone cannot resolve. A single interaction can generate deposits, receipt tokens, rewards, and fees, requiring transaction-level classification. Staking rewards are generally treated as income upon receipt under IRS Revenue Ruling 2023-14, and that income value then sets the basis for later sales. Missing acquisition history or mistaken transaction labels can easily lead to overpaid taxes or compliance gaps.
Against this backdrop, SEC Chairman Paul Atkins signaled that the agency is “ready, willing, and able” to write crypto rules if the Clarity Act stalls in Congress. Although the bill passed the House and Senate Banking Committee, it has not reached a full Senate vote. Atkins prefers legislation but says the SEC can act under its existing authority to avoid a prolonged regulatory void. Meanwhile, South Korea confirmed its long-debated crypto tax will finally take effect on January 1, 2027, imposing a 20% income tax (22% with local surcharges) on yearly gains above KRW 2.5 million. The decision underscores how governments are tightening oversight as crypto becomes mainstream.
Market observers also noted that Bitcoin has historically entered bear phases around U.S. midterm elections, later entering extended bull rallies. While no forecasts are made, traders remain attentive to political and regulatory milestones that could influence market cycles.
