CryptoTax

The U.S. Senate Finance Committee is set to convene a landmark hearing on October 1, 2025, to address the complex landscape of digital asset taxation, signaling a critical step toward regulatory clarity in the rapidly evolving cryptocurrency sector. Chaired by Senator Mike Crapo, the session, titled “Examining the Taxation of Digital Assets,” will feature testimony from industry leaders and tax experts, including Coinbase Vice President of Tax Lawrence Zlatkin, Coin Center Policy Director Jason Somensatto, Annette Nellen of the American Institute of CPAs’ Digital Assets Tax Task Force, and Andrea S. Kramer of ASKramer Law. This hearing, spurred by a July 2025 White House report, aims to address pressing issues like double taxation for miners and stakers, stablecoin payments, and the broader integration of digital assets into the U.S. tax framework.
A Call for Tailored Crypto Tax Rules
The upcoming hearing aligns with recommendations from the White House’s Digital Asset Working Group, which in July urged Congress to recognize cryptocurrencies and non-fungible tokens (NFTs) as a distinct asset class. The report advocated for tailored tax rules to address the unique characteristics of digital assets, moving away from the current IRS classification of crypto and NFTs as property, which triggers capital gains taxes on transactions involving profit. If legislative action stalls, the report presses the Treasury Department and IRS to issue guidance on ambiguous areas, such as the taxation of stablecoin payments, airdrops, mining, and staking rewards.
This push for clarity reflects the growing prominence of digital assets, with over $6 trillion in on-chain real-world assets and billions in daily transactions. The hearing will explore how to balance innovation with regulatory oversight, ensuring that tax policies foster growth while addressing risks like tax evasion and illicit financial flows.
Industry Experts to Shape the Discussion
The Senate Finance Committee has assembled a panel of experts to provide insights into the complexities of crypto taxation. Lawrence Zlatkin, Coinbase’s Vice President of Tax, brings industry perspective on the operational challenges faced by digital asset platforms. Jason Somensatto, Policy Director at Coin Center, a leading blockchain advocacy group, will likely address the need for policies that preserve decentralization while ensuring compliance. Annette Nellen, chair of the AICPA’s Digital Assets Tax Task Force, and Andrea S. Kramer, a founding member of ASKramer Law, will offer specialized expertise on aligning tax frameworks with the unique attributes of cryptocurrencies and NFTs.
The testimony is expected to cover critical issues, such as the taxation of small-scale transactions, the classification of digital assets, and the compliance burdens faced by users and businesses. By bringing together stakeholders from industry, advocacy, and tax policy, the hearing aims to lay the groundwork for a cohesive regulatory approach that supports innovation while ensuring fairness.
Senator Lummis Champions Tax Reform for Miners and Stakers
A key focus of the hearing will be addressing the concerns raised by Senator Cynthia Lummis, a vocal advocate for cryptocurrency-friendly policies. Lummis has criticized the current tax system for imposing “unfair double taxation” on miners and stakers, who face tax liabilities both when earning block rewards and again when selling their assets. “It’s time to stop this unfair tax treatment and ensure America is the world’s Bitcoin and Crypto Superpower,” Lummis declared in June 2025, underscoring her commitment to fostering a competitive digital asset ecosystem.
Lummis previously attempted to include a fix for this issue in President Trump’s July 2025 budget reconciliation bill, but the provision was excluded from the final legislation. The upcoming hearing provides a platform to revisit this issue, potentially shaping new policies to eliminate double taxation and support the growth of mining and staking activities in the U.S.
Navigating a Complex Regulatory Landscape
The Senate Finance Committee’s hearing comes at a pivotal moment for the cryptocurrency industry, as global financial institutions and governments accelerate blockchain adoption. The White House’s July report emphasized the need to adapt existing tax rules for securities and commodities to better suit digital assets, avoiding their treatment as outliers. Without new legislation, the Treasury and IRS are urged to clarify grey areas, such as whether small sums from staking, mining, or airdrops should trigger taxable events.
The IRS’s current approach, which treats every profitable crypto transaction as a taxable event, has drawn criticism for its complexity and burden on users. The introduction of Form 1099-DA for digital asset transactions in 2026, as outlined in the IRS’s recent Form W-9 draft, further underscores the need for streamlined regulations. The Senate hearing will likely explore ways to simplify compliance while ensuring robust reporting mechanisms to prevent tax evasion.
A Defining Moment for Crypto Taxation
The October 1 hearing marks a critical opportunity to shape the future of digital asset taxation in the U.S. By addressing issues like double taxation, stablecoin payments, and small-scale transaction reporting, the Senate Finance Committee aims to create a balanced framework that supports innovation while maintaining fiscal integrity. The testimony from Zlatkin, Somensatto, Nellen, and Kramer will provide valuable insights into the practical and legal challenges of taxing digital assets, guiding policymakers toward solutions that align with the realities of the blockchain ecosystem.
As the cryptocurrency market navigates volatility, with Bitcoin holding at $111,700 and Ethereum dipping below $4,100, the hearing’s outcomes could influence investor sentiment and market dynamics. With institutional demand remaining strong—evidenced by $241 million in Bitcoin ETF inflows despite recent outflows—the U.S. stands at a crossroads to solidify its position as a global leader in digital finance. The Senate’s deliberations will play a pivotal role in defining how cryptocurrencies and NFTs are integrated into the tax system, paving the way for a more transparent and innovative financial future.
#BTC #NFTs #cryptotax

Where your gains are free - and where they're not ↓

UAE 🇦🇪
Zero crypto tax
The UAE remains one of the most tax-friendly hubs for crypto holders and traders.

Germany 🇩🇪
No tax after 1 year
Hold crypto for more than a year, and you can sell tax-free.

USA 🇺🇸
Capital gains apply
Short-term and long-term capital gains tax depending on holding period.

Estonia 🇪🇪
Crypto-friendly taxation
Crypto is tax-free unless converted into fiat or used for payments.

Portugal 🇵🇹
Tax perks for residents
Crypto profits are exempt for individuals (but businesses are taxed).

Singapore 🇸🇬
No capital gains tax
Crypto transactions and holdings are generally not taxed.

Switzerland 🇨🇭
Tax varies by canton
Crypto is taxed as assets, but trading and long-term holding rules are favorable.

Japan 🇯🇵
Income tax on crypto
Crypto gains are classified as "miscellaneous income" with rates up to 55%.

Crypto tax rules differ across countries — and they're changing fast.
Always check local laws before you trade.

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#CryptoTax #CryptoRegulation #Blockchain #CryptoNews #DigitalAssets

Данило Гетманцев знову виступив із серйозним попередженням для всіх криптотрейдерів та інвесторів. Він наголосив, що операції з криптовалютою вже сьогодні підлягають оподаткуванню, навіть без нового закону.
📌 За чинними правилами оподатковується дохід за ставкою 23%, а не прибуток. Це означає, що якщо ви купили $BTC чи $ETH за 20 000$, а продали за 25 000$, податок нараховується на всю суму доходу, а не лише на різницю.
🔥 Найбільший ризик полягає в тому, що якщо хтось ухилявся від сплати податків, то при перевірці можуть донарахувати зобов’язання одразу за кілька років. У такому випадку, за словами Гетманцева, «це може бути дуже боляче» 💥😬.
👉 Він також додав, що після остаточного ухвалення нового закону з’явиться можливість легально вийти в «білу», плануючи своє фінансове майбутнє на довгі роки.
⚡️Тож українським криптоінвесторам варто вже зараз серйозно замислитися над ризиками, аби не опинитися під хвилею несподіваних податкових донарахувань.
#CryptoTax #ukraine #BTC #ETH 🚀📉

On October 1, the U.S. Senate will host a hearing that could reshape the future of cryptocurrency payments. The Senate Banking Committee has invited top experts from Coinbase, Coin Center, and leading tax lawyers to discuss whether it makes sense to tax every single crypto transaction, no matter how small.

A Longstanding Problem for Crypto Users
Currently, Americans must report every transaction – even when buying a $5 coffee with Bitcoin. The IRS treats this as a “taxable event.” This rule has discouraged many from using crypto for everyday payments.
The proposed de minimis exemption would remove taxes on small transactions, making it easier to use crypto just like cash.

Trump Administration Backs the Change
The White House has signaled strong support. Spokesperson Karoline Leavitt stressed that President Trump sees the exemption as a way to simplify crypto payments and that the administration wants to position the U.S. as the “crypto capital of the world.”
Trump is also preparing to sign the GENIUS Act, focused on stablecoins, as part of a broader push to strengthen America’s role in digital finance.

Past Attempts Have Failed
This isn’t the first try. In 2020, lawmakers proposed exempting crypto transactions under $200 – the bill failed. A similar version in 2022 also went nowhere. In 2025, Senator Cynthia Lummis suggested raising the limit to $300, but the proposal was removed before the final version of the bill.
Meanwhile, the IRS continues to insist that every crypto transaction must be reported, regardless of size.

What’s Next?
The big question: will the Senate finally reach a compromise, or will October 1 be just another meeting full of talk but no action?
One thing is certain – if the de minimis exemption is approved, it would revolutionize the way cryptocurrencies are used in daily life and could accelerate adoption of Bitcoin, Ethereum, and other digital assets.

#cryptotax , #usa , #CryptoAdoption , #DigitalAssets , #blockchain

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The U.S. Internal Revenue Service (IRS) has taken a significant step toward modernizing tax compliance for the digital economy with the release of a draft Form W-9 for 2026. This updated form introduces critical requirements for digital asset transactions, mandating that U.S. brokers collect and verify Taxpayer Identification Numbers (TINs) for activities involving cryptocurrencies, non-fungible tokens (NFTs), and other digital assets. Set to take effect in January 2026, these regulations aim to enhance tax reporting accuracy, reduce compliance risks, and align the rapidly evolving digital asset market with traditional financial oversight.
Strengthening Tax Compliance for Digital Assets
The 2026 Form W-9 draft reflects the IRS’s commitment to addressing the growing prominence of digital assets in financial markets. A key feature of the draft is the requirement for U.S. brokers to collect and verify TINs for all transactions involving digital assets, such as cryptocurrencies and NFTs. This measure ensures that taxable events, including capital gains from trading or selling digital assets, are accurately reported to the IRS, closing gaps in tax compliance and increasing transparency.
Additionally, the draft introduces a new checkbox in Part II of Form W-9, allowing brokers to certify their status as U.S. digital asset brokers exempt from certain information reporting requirements under specific regulations. A new exempt payee code (code 14) has also been added, enabling payees to claim exemption from backup withholding for digital asset transactions through 2026, in line with IRS Notice 2025-33. These updates align with the rollout of Form 1099-DA, a dedicated information return for digital asset transactions, signaling the IRS’s focus on robust reporting mechanisms.
Clarifications for Sole Proprietors and Disregarded Entities
The draft Form W-9 provides explicit guidance for sole proprietors and disregarded entities, such as single-member LLCs, to ensure accurate TIN reporting. The form mandates that sole proprietors use their Social Security Number (SSN) and disregarded entities use their owner’s TIN, even if an Employer Identification Number (EIN) exists for the entity. This clarification aims to standardize TIN collection and minimize errors that could trigger backup withholding, a process where payers withhold taxes from payments due to incorrect or missing TINs. By streamlining these requirements, the IRS seeks to reduce compliance burdens for individuals and businesses while ensuring accurate tax reporting.
Implications for Businesses and Individuals
The introduction of these digital asset compliance measures requires businesses, particularly brokers handling cryptocurrencies and NFTs, to update their compliance processes by January 2026. This includes revising onboarding procedures to incorporate the new Form W-9 requirements, such as collecting updated TINs and integrating the digital asset broker certification checkbox. Entities managing electronic Forms W-9 must also adapt their systems to accommodate these changes, ensuring seamless compliance with IRS regulations.
For individuals and enterprises, the IRS emphasizes the importance of verifying TIN accuracy to avoid penalties or backup withholding. The $10,000 transaction reporting threshold for digital assets, combined with the new Form 1099-DA requirements, underscores the need for meticulous record-keeping. As digital assets gain mainstream adoption, these regulations aim to provide clarity and structure to a previously under-regulated sector, fostering trust and accountability in the digital economy.
A Broader Push for Digital Asset Regulation
The 2026 Form W-9 draft is part of a broader IRS initiative to modernize tax compliance in response to the rapid growth of digital assets. Building on the Infrastructure Investment and Jobs Act of 2021, the IRS has introduced comprehensive regulations, including final rules issued in June and December 2024, requiring custodial brokers to report gross proceeds from digital asset sales starting in 2026 and tax basis information for certain transactions beginning in 2027. These efforts aim to align digital asset reporting with traditional financial instruments, ensuring equitable tax treatment across markets.
The IRS’s focus on digital assets reflects their increasing significance in global finance, with over $6 trillion in on-chain real-world assets and billions in daily transactions. By integrating these compliance requirements into Form W-9, the IRS is paving the way for a more transparent and regulated digital asset ecosystem, addressing risks such as tax evasion while supporting innovation in blockchain technology.
Preparing for the Future of Tax Compliance
As the January 2026 effective date approaches, businesses and individuals must proactively prepare for the new Form W-9 requirements. Brokers should review their compliance frameworks, update client onboarding processes, and ensure systems are equipped to handle the new certification and exemption codes. Individuals and enterprises engaging in digital asset transactions should verify their TINs and maintain accurate records to comply with IRS reporting standards.
The 2026 Form W-9 draft marks a pivotal moment in the IRS’s efforts to integrate digital assets into the U.S. tax system. By enhancing oversight and standardizing reporting, these regulations aim to create a fair and transparent framework for the digital economy, ensuring that cryptocurrencies, NFTs, and other digital assets are subject to the same rigorous compliance standards as traditional financial instruments. As the digital asset landscape continues to evolve, these measures will play a critical role in shaping a secure and innovative financial future.
#cryptotax #IRS

Україна активно рухається до створення комплексної нормативно-правової бази для крипторинку, і нові деталі щодо майбутнього законопроєкту стають дедалі доступнішими. Генеральний менеджер Binance у Центрально-Східній Європі та Центральній Азії Кирилл Хомяков нещодавно прокоментував пропоновані поправки до криптозаконопроєкту, висловивши підтримку більш поміркованому підходу до оподаткування. За його словами, Binance виступає за впровадження німецької моделі оподаткування, яка може стати зразком для України, щоб збалансувати регулювання та сприяти розвитку криптоіндустрії.
Законопроєкт, який уже пройшов розгляд у податковому комітеті Верховної Ради, передбачає введення системи оподаткування криптоактивів із 1 січня 2026 року. Серед ключових положень: класифікація токенів на три категорії (прив’язані до активів, електронні гроші та інші віртуальні активи), обов’язкове підтвердження володіння криптовалютами за допомогою криптографічних ключів, а також необхідність авторизації для бірж і кастодіанів. Фізичні особи сплачуватимуть 5% ПДФО з прибутку від операцій із криптовалютами, тоді як для компаній діятимуть правила, аналогічні до цінних паперів.
Хомяков наголосив, що Binance активно співпрацює з українськими регуляторами, надаючи експертизу та підтримку. Зокрема, у 2023 році біржа організувала навчальні семінари для правоохоронців і регуляторів, щоб сприяти кращому розумінню блокчейн-технологій. Крім того, Україна розглядає можливість створення стратегічного крипторезерву за підтримки Binance, що може зробити країну першою в Європі з таким підходом.
Ці зміни є частиною ширшої стратегії України з легалізації криптовалют і відповідності європейським стандартам MiCA. Законопроєкт спрямований на усунення правового вакууму та створення прозорих умов для криптобізнесу, що може залучити більше інвесторів.[
#CryptoRegulation #ukrainecrypto #Binance #blockchain #cryptotax
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