The Internal Revenue Service (IRS) has postponed the implementation of new crypto cost-basis reporting rules to the end of 2026, providing brokers additional time to comply with complex regulations.
Delay in New Rule Implementation
Initially scheduled for late 2024, the implementation of new rules has been delayed in response to numerous requests from brokers and platforms needing more time to adapt. This temporarily relieves crypto investors who were preparing for the original deadline.
Impact on Cryptocurrency Market
In a recent episode of the Thinking Crypto podcast, host Tony Edward discussed this regulatory update and highlighted BlackRock’s significant move into the crypto space. The asset management giant has received approval for its tokenized money market fund, BUIDL, to back Frax Finance’s USD stablecoin (FRX USD). This stablecoin combines blockchain technology with the stability of BlackRock’s prime treasury assets, including cash and U.S. Treasury bills, showcasing the growing acceptance of tokenized finance among major financial institutions. Edward also noted signs of recovery in the crypto market, with Bitcoin showing modest gains and altcoins like XRP, Solana, and Cardano experiencing notable increases. However, he cautioned that the market remains in a consolidation phase, with potential risks ahead before a sustained rally can occur.
State of Stablecoins
Additionally, Tether’s USDT has faced a significant market cap decline, attributed to new European regulations, although it continues to lead as the top stablecoin issuer. Analysts predict rising competition from alternatives like USDC and FRX USD in the coming years.
The delay in implementing new rules provides crypto investors and brokers more time to prepare for complex regulations. Meanwhile, the cryptocurrency market continues to evolve, citing examples of major financial players' actions in this field and changes in the state of stablecoins.
