The Internal Revenue Service (IRS) has postponed new cryptocurrency cost-basis reporting regulations. Initially slated for enforcement by the end of 2024, the deadline has now been extended to December 31, 2026. The decision comes as brokers and crypto platforms struggle to meet the complex reporting requirements.
The new rules would have compelled centralized crypto platforms to report exhaustive tax accountancy to the transactions. This is why, as stated, the extension provided by the IRS to the industry is to relieve pressure and provide adequate time for platforms to adjust.
This gives crypto investors and businesses time to deal with a constantly shifting and unpredictable regulatory environment.
Adding a touch of humor to the discussion, Elon Musk recently shared a Pepe Frog meme on X (formerly Twitter). The meme humorously depicted the challenges faced by cryptocurrency investors, such as staking tokens, gas fees, and tax complexities.
While lighthearted, the post resonated with many, reflecting the real-world difficulties of navigating crypto taxation in an evolving market.
Also Read: XRP Poised for $15 Milestone Amid Market Surge and Expanding Ripple Ecosystem
BlackRock Expands Digital Asset Presence with Stablecoin Support
Amid regulatory developments, trillion-dollar asset manager BlackRock has made significant strides in the crypto ecosystem. BUIDL, its tokenized money market fund, has been approved to underpin Frax Finance’s USD stablecoin, FRX USD.
This stablecoin is backed by cash, U.S. Treasury bills and repurchase agreements managed through BlackRock. Frax Finance underlined that there is no volatility of FRX USD explaining that it is built as programmable on the blockchain but contains BlackRock’s treasury.
This road map was more straightforward to approve when Securitize became part of the process. This further reinforces BlackRock’s making tokenized finance part of conventional markets, in line with its CEO Larry Fink’s direction in reshaping finance.
Crypto Market Faces Mixed Trends in Early 2025
The cryptocurrency market is exhibiting mixed signals as it enters 2025, with Bitcoin recording modest upward movement and altcoins like XRP, Solana, and Cardano experiencing notable price increases. Despite these gains, the market remains in a consolidation phase, with potential risks still present before a sustained rally materializes.
Meanwhile, stablecoin activity continues to evolve. Tether’s USDT recently experienced its most significant market cap decline since the FTX collapse, influenced by Europe’s Markets in Crypto-Assets (MiCA) regulations.
While Tether retains its position as the top stablecoin issuer, competition is growing, particularly from alternatives like USDC and FRX USD.
Conclusion
The IRS’s decision to delay new tax reporting requirements provides much-needed time for the industry to adapt. Simultaneously, developments like BlackRock’s stablecoin support and Elon Musk’s playful commentary highlight the evolving relationship between institutional finance and the crypto world.
As regulations tighten and markets shift, these trends will shape the digital asset landscape in the years ahead.
Also Read: Do Kwon Extradited to the US, Faces Fraud Charges Over $40 Billion Crypto Collapse
