Senator Cruz introduces companion bill to prohibit the Fed from issuing a CBDC  

Cryptocurrency investors are increasingly moving capital into stablecoins and tokenized real-world assets (RWAs) in a bid to avoid volatility ahead of US President Donald Trump’s widely anticipated tariff announcement on April 2.Increasingly, more capital is flowing into stablecoins and the real-world asset (RWA) tokenization sector, which refers to financial products and tangible assets such as real estate and fine art minted on the blockchain.“Stablecoins and RWAs continue to see steady inflows of capital as safe havens in the current uncertain market,” crypto intelligence platform IntoTheBlock wrote in a March 31 X post.“However, because these assets reside on-chain, even slight shifts in sentiment can trigger significant price movements, driven by the lower barriers to reallocating capital in real time,” the firm noted.Stablecoins, total market cap. Source: IntoTheBlockThe flight to safety is mainly attributed to geopolitical tensions and global trade concerns, according to Juan Pellicer, senior research analyst at IntoTheBlock:“Many investors were expecting economic tailwinds following Trump’s inauguration as president, but increased geopolitical tensions, tariffs and general political uncertainty are making investors more cautious.”“This is not unreasonable, as even though global growth forecasts remain positive, growth expectations have decreased globally in recent months,” he added.Related: Bitcoin ‘more likely’ to hit $110K before $76.5K — Arthur HayesThe prospect of a global trade war has heightened inflation-related concerns, causing a significant decline in both cryptocurrency and traditional equity markets.S&P 500, BTC/USD, 1-day chart. Source: TradingView Bitcoin (BTC) has fallen 19% and the S&P 500 (SPX) index has fallen over 7% in the two months since Trump announced import tariffs on Chinese goods on Jan. 20, the day of his inauguration as president.The April 2 announcement is expected to detail reciprocal trade tariffs targeting top US trading partners. The measures aim to reduce the country’s estimated $1.2 trillion goods trade deficit and boost domestic manufacturing.Related: Stablecoin rules needed in US before crypto tax reform, experts sayInvestor sentiment pressured by April 2 Trump tariff announcementGlobal tariff fears and uncertainty around the upcoming announcement continue to pressure investor sentiment in global markets.“Risk appetite remains muted amid tariff threats from President Trump and ongoing macro uncertainty,” Iliya Kalchev, dispatch analyst at digital asset investment platform Nexo, told Cointelegraph.Meanwhile, RWAs reached a new cumulative all-time high of over $17 billion on Feb. 3, and are currently less than 0.5% away from surpassing the $20 billion milestone, according to data from RWA.xyz.RWA global market dashboard. Source: RWA.xyzSome industry watchers said that Bitcoin’s lack of upside momentum may drive RWAs to a $50 billion all-time high before the end of 2025, as their increased liquidity will help RWAs attract a significant share of the $450 trillion global asset market.Magazine: SCB tips $500K BTC, SEC delays Ether ETF options, and more: Hodler’s Digest, Feb. 23 – March 1

Michael Saylor’s Strategy bought nearly $2 billion of Bitcoin, taking advantage of a recent price dip despite growing market concerns tied to US President Donald Trump’s upcoming tariff announcement.Strategy, formerly MicroStrategy, has acquired 22,048 Bitcoin (BTC) for $1.92 billion at an average price of approximately $86,969 per Bitcoin.The company now holds over 528,000 Bitcoin acquired for $35.63 billion at an average price of $67,458 per BTC, announced Michael Saylor, the co-founder of Strategy, in a March 31 X post.Source: Michael SaylorStrategy is the world’s largest corporate Bitcoin holder and surpassed the 500,000 Bitcoin holdings milestone on March 24, days after Saylor hinted at an upcoming Bitcoin buy after the company announced the pricing of its latest tranche of preferred stock on March 21.The firm is currently up over 21% on its Bitcoin holdings with an unrealized profit of over $7.7 billion, according to Saylortracker data.Strategy total Bitcoin holdings, all-time chart. Source: SaylortrackerStrategy’s near $2 billion dip buy comes despite investor concerns related to Trump’s upcoming tariff announcement on April 2, which may set the tone for Bitcoin’s price trajectory throughout the month.The April 2 announcement is expected to detail reciprocal trade tariffs targeting top US trading partners, a development that may increase inflation-related concerns and limit demand for risk assets, such as BitcoinRelated: Bitcoin ‘more likely’ to hit $110K before $76.5K — Arthur HayesThis is a developing story, and further information will be added as it becomes available.

Key takeawaysUS crypto investors must file their 2024 tax returns by April 15, 2025, ensuring all crypto transactions are accurately reported to the IRS.Crypto held for less than a year is taxed as ordinary income (10%-37%), while holdings over a year qualify for lower capital gains rates (0%, 15%, or 20%).Selling, trading, or spending crypto triggers taxes, while holding or transferring between wallets does not.Mining, staking, airdrops, and crypto payments are taxed as income at applicable rates.The world of cryptocurrencies can indeed be an exciting space for investors, but as the tax season approaches, many US investors find themselves grappling with confusion and uncertainty. With the upcoming tax filing deadline of April 15, 2025, it’s a critical time to get a handle on crypto tax obligations. Ask most US crypto investors, and they’ll likely tell you that figuring out what transactions trigger a taxable event feels like navigating a maze.Understanding various aspects of tax filing is crucial for accurately filing taxes, avoiding penalties and staying compliant with the Internal Revenue Service (IRS). This article breaks down key elements like tax brackets, rates, exemptions and other critical details. How does the IRS tax crypto?The Internal Revenue Service, the agency responsible for collecting US federal taxes, treats cryptocurrencies as property for tax purposes. You pay taxes on gains realized when selling, trading or disposing of cryptocurrencies. For short-term capital gains (held less than a year), you pay taxes at the rates of 10%–37%, depending on your income bracket. Long-term capital gains (assets held for over a year) benefit from reduced rates of 0%, 15% or 20%, also based on your taxable income.When you dispose of cryptocurrency for more than its purchase price, you generate a capital gain. Conversely, selling below the purchase price results in a capital loss. You must report both your capital gains and losses for the year in which the transaction occurs, with gains being taxable and losses potentially offsetting gains to reduce your tax liability. With the upcoming April 15, 2025, deadline for filing 2024 tax returns, US crypto investors need to ensure these transactions are accurately tracked and reported.To illustrate, suppose you purchased Ether (ETH) worth $1,000 in 2023 and sold it after a year in 2024 for $1,200, netting a $200 profit. The IRS would tax that $200 as a long-term capital gain, applying the appropriate rate based on your 2024 income.Taxes are categorized as capital gains tax or income tax, depending on the type of transactions:Capital gains tax: Applies to selling crypto, using crypto to purchase goods or services, or trading one cryptocurrency for another.Income tax: Applies to crypto earned through mining, staking, receiving it as payment for work, or referral bonuses from exchanges.These distinctions are crucial for accurate reporting by the April 15 deadline. Gains are taxed, while losses can help offset taxable income, so detailed record-keeping is a must.Did you know? In Australia, gifting cryptocurrency triggers a capital gains tax (CGT) event. The giver may need to report gains or losses based on the asset’s market value at the time of transfer, though certain gifts — like those between spouses — may qualify for exemptions. While this differs from US rules, it highlights how crypto taxation varies globally.How crypto tax rates work in the USIn the US, your crypto tax rate depends on your income and how long you’ve held the cryptocurrency. Long-term capital gains tax rates range from 0% to 20%, and short-term rates align with ordinary income tax rates of 10%–37%. Transferring crypto between your own wallets or selling it at a loss doesn’t trigger a tax liability.You only owe taxes when you sell your crypto, whether for cash or for any other cryptocurrency. Consider this example: Suppose you bought crypto for $1,000 in 2024, and by 2025, its value rose to $2,000. If you don’t sell, no tax is due — unrealized gains aren’t taxable.If you sell cryptocurrency after holding it for a year or less, your profits are subject to short-term capital gains tax. These gains are taxed as ordinary income, meaning they are added to your total taxable earnings for the year. Tax rates are progressive, based on income brackets, so different portions of your income are taxed at different rates. For instance, a single filer in 2025 pays 10% on the first $11,000 of taxable income and 12% on income up to $44,725. Short-term rates are higher than long-term rates, so timing your sales can significantly impact your tax bill.Understanding crypto capital gains tax in the USIf you sell cryptocurrency after holding it for a year or less, your profits are subject to short-term capital gains tax. These gains are treated as ordinary income and added to your total taxable earnings for the year. Since tax rates are based on income brackets, different portions of your earnings are taxed at different rates, as explained above. 2024–2025 federal income tax brackets for crypto earningsHere are the federal income tax rates for the 2024–2025 tax year. You apply the 2024 tax brackets to income earned in the 2024 calendar year, reported on tax returns filed in 2025.Long-term capital gains tax for crypto earned in 2024You pay long-term capital gains tax if you sell cryptocurrency after holding it for more than a year. Unlike short-term gains, these aren’t taxed as ordinary income. Instead, tax rates are based on your total taxable income and filing status. Long-term capital gains tax rates are 0%, 15% or 20%, making them lower than short-term rates. Holding crypto longer can reduce your tax burden significantly.Here is a table outlining long-term crypto capital gains tax for the calendar year 2024. These rates are applicable when filing tax returns in 2025.2024–2025 standard deduction: Reduce your crypto taxable incomeThe standard deduction is the portion of your income that’s exempt from federal taxes before tax rates are applied, reducing your taxable income.Here is a table regarding tax deductions in the calendar year 2024. These amounts are applicable when filing for tax returns in 2025.How are crypto airdrops taxed in the US?In the US, crypto airdrops are treated as ordinary income by the IRS and taxed at the time they come under the taxpayer’s full control. The taxable amount is based on the tokens’ fair market value at that moment, even if the taxpayer didn’t request them. Later, selling or trading those tokens may trigger capital gains tax, depending on the price difference between receipt and disposal.The taxable event hinges on control: If tokens automatically appear in a taxpayer’s wallet, the income is typically recognized upon arrival. If the tokens require manual claiming (e.g., through a transaction), the taxable event occurs when the claim is completed. Either way, the fair market value at that point determines the income reported.When the taxpayer sells or trades the airdropped tokens, they incur a capital gain or loss, calculated as the difference between the value at receipt (the basis) and the value at sale or trade. Moreover, the holding periods matter: If sold within a year, gains are taxed at ordinary income rates (10%–37%, based on income brackets). If held longer than a year, gains qualify for lower long-term capital gains rates (0%, 15% or 20%, depending on income). Proper tracking of receipt dates and values is essential for accurate tax reporting.Crypto gifting rules and tax implications in the USIn the US, gifting cryptocurrency is generally not a taxable event for either the giver or the recipient, meaning no immediate tax is owed. However, specific thresholds and reporting requirements must be followed to stay compliant with IRS rules. For the 2024 tax year (filed by April 15, 2025), if the total value of crypto gifts to a single recipient exceeds $18,000, the giver must file a gift tax return using Form 709. When the recipient eventually sells the gifted cryptocurrency, they’ll calculate capital gains or losses based on the giver’s original cost basis — the price the giver paid for the crypto. If this cost basis isn’t documented or available, the recipient may need to assume a basis of $0, which could increase their taxable gain upon sale. To avoid complications, both parties should keep detailed records of the gift’s fair market value at the time of transfer and the giver’s original cost basis.Did you know? In the UK, giving cryptocurrency as a gift may result in capital gains tax for the giver, except for gifts to spouses or civil partners. Additionally, inheritance tax could apply if the giver dies within seven years of the gift.Essential forms for filing crypto taxes in 2024With the April 15, 2025, deadline nearing, here are the key forms for reporting 2024 crypto transactions:Form 8949: For reporting capital gains and losses from crypto sales, trades and disposals. Each transaction must be listed individually.Schedule D (Form 1040): Summarizes total capital gains and losses from Form 8949; used for calculating taxable income.Schedule 1 (Form 1040): Reports additional income, including staking rewards, airdrops and hard forks, if classified as taxable income.Schedule C (Form 1040): Used by self-employed individuals or businesses to report crypto-related income from mining, consulting or freelance work.Form 1099-MISC: Issued for staking, mining or payment income over $600Form 1040: The main return form to combine income, deductions and tax liability.FBAR (FinCEN Form 114): File separately if foreign crypto accounts exceeded $10,000 in 2024.Step-by-step guide to filing crypto taxes for the 2024–2025 tax seasonHere’s how to file, step by step, leveraging the detailed tax rates and forms outlined above.Step 1: Gather all crypto transaction recordsCollect records for every 2024 crypto transaction:Dates of buying, selling, trading or receiving cryptoAmounts (e.g., 0.5 Bitcoin) and US dollar fair market value (FMV) at the timeCost basis (what you paid, including fees) and proceeds (what you received).To ensure complete records, pull data from wallets, exchanges (e.g., Coinbase) and blockchain explorers. Export transaction histories or CSVs, and note staking rewards, airdrops or mining income separately with their FMV on receipt.Step 2: Identify taxable eventsPinpoint which 2024 actions trigger taxes:Taxable: Selling crypto for cash/stablecoins, trading crypto, spending crypto or earning it (mining, staking, airdrops).Non-taxable: Buying and holding with USD, moving crypto between your wallets, gifting up to $18,000 per recipient.Classify each taxable event as short-term (≤1 year) or long-term (>1 year) for rate purposes.Step 3: Calculate capital gains and lossesFor taxable sales or trades:Formula: Proceeds (FMV at disposal) – Cost Basis = Gain/LossExample: Bought 1 Ether (ETH) for $2,000 in May 2024, sold for $2,500 in November 2024 = $500 short-term gain.Use first-in, first-out or specific identification for cost basis (be consistent). Sum your net gains/losses. See the “2024 Federal Income Tax Brackets” section for how these are taxed.Step 4: Calculate crypto incomeFor earnings (mining, staking, airdrops):Record FMV in USD when received (e.g., 10 Cardano worth $5 on June 1, 2024 = $5 income).Add to your other 2024 income to set your tax bracket, detailed in the sections above.Step 5: Apply the 2024 standard deductionLower your taxable income with the standard deduction:Single: $14,600Married filing jointly: $29,200Head of household: $21,900Subtract this from total income (including short-term gains and crypto income). Long-term gains are taxed separately.Step 6: Determine your tax ratesApply rates to your gains and income (refer to “How Crypto Tax Rates Work in 2024”):Short-term gains and income: Ordinary rates (10%–37%).Long-term gains: 0%, 15% or 20%, based on income.Offset gains with losses (up to $3,000 net loss against other income; carry forward excess).Step 7: Complete the necessary tax formsFill out the required IRS forms (see “Essential Forms for Filing Crypto Taxes in 2024”):List capital gains/losses and income on Form 8949, Schedule D and Schedule 1 as applicable.Use Schedule C if self-employed (e.g., mining business).Combine everything on Form 1040.Check Form 1099-MISC if received and file FBAR for foreign accounts over $10,000.Step 8: File your return by April 15, 2025Submit via IRS e-file or mail, postmarked by April 15, 2025. Need more time? File Form 4868 for an extension to Oct. 15, 2025, but pay estimated taxes by April 15 to avoid penalties.Step 9: Pay any taxes owedEstimate your tax from Step 6, then pay via IRS Direct Pay or check. Late payments after April 15 incur a 0.5% monthly penalty plus interest.Step 10: Keep records for auditsStore transaction records and forms for three to six years. The IRS is intensifying crypto scrutiny — be prepared.Did you know? In Canada, giving cryptocurrency as a gift is generally considered a taxable disposition, requiring the giver to determine and report any capital gains or losses.Important dates and deadlines for 2024–2025 tax season and beyond Here are important dates regarding the 2024–2025 tax season and 2025 transition:2024 tax seasonJan. 31, 2025: Some exchanges may issue voluntary 1099s (e.g., 1099-MISC).April 15, 2025: File taxes on crypto earned in 2024.2025 transitionJan. 1, 2025: Form 1099-DA reporting begins.Dec. 31, 2025: Safe harbor ends for adjusting universal cost basis.Jan. 31, 2026: Receive Form 1099-DA for 2025 trades.Quarterly estimatesJune 15, Sept. 15, 2025, etc., for active traders.New IRS crypto tax rules for 2025: What you need to knowThe IRS introduced new rules for tax filing and reporting aimed at US cryptocurrency taxpayers, but these regulations have encountered significant pushback. Both the US Senate and House of Representatives voted to repeal them under the Congressional Review Act (CRA), and President Donald Trump has signaled support for the rollback. Despite this uncertainty, understanding these rules remains crucial, especially with deadlines looming in 2025.A core component of the new rules is calculating taxes using a cost basis — the original amount invested in an asset, including fees or commissions. Accurately tracking cost basis is vital for proper tax reporting and prevents double taxation on reinvested earnings. It’s the starting point for determining capital gains or losses. Under the updated IRS guidelines, crypto investors must now track the cost basis (original purchase price) separately for each account or wallet, moving away from a universal tracking approach. This requires recording the purchase date, acquisition cost and specific transaction details.The rules also mandate specific identification for every digital asset sale, requiring taxpayers to report the exact purchase date, quantity and cost of the assets sold. If this information isn’t provided, the IRS defaults to the first-in, first-out (FIFO) method — selling your earliest coins first — which could inflate taxable gains if those initial purchases had lower costs. For taxpayers previously using a universal cost basis method, the IRS requires reallocating their basis across all accounts or wallets accurately by Dec. 31, 2025, to comply with these standards.Form 1099-DA: What to expect for crypto taxes in 2025–2026As of March 27, 2025, Form 1099-DA is set to become a pivotal tool for the 2025–2026 tax season, simplifying how cryptocurrency transactions are reported in the US. This new form, tailored specifically for digital assets, will be issued by exchanges to both taxpayers and the IRS, providing a detailed breakdown of activities like sales, trades and other taxable crypto events from 2025. It’s designed to streamline compliance and bolster IRS oversight, reflecting the agency’s growing focus on tracking digital asset income. For taxpayers, it promises easier, more accurate reporting, while exchanges take on a larger role in tax documentation. For the 2024 tax year — due by April 15, 2025 — this form isn’t yet available; filers must still rely on existing forms like Form 1099-MISC until Form 1099-DA officially takes effect for 2025 earnings.IRS crypto tax penalties: What happens if you don’t report or under-report in 2024?US taxpayers who fail to meet their tax obligations may face penalties from the IRS. When tax obligations go unmet, the IRS sends a notice or letter detailing the penalty, its reason (e.g., late filing, non-payment or inaccurate reporting) and your next steps. Penalties vary: Late filing or non-payment can incur fines up to 25% of the unpaid tax, plus interest that accrues until settled. Other triggers — like bounced checks or fraudulent claims — add further costs, and the IRS may launch an audit to scrutinize your filings.Individuals may face penalties of up to $100,000 and criminal sanctions, including imprisonment for up to five years. Corporations can be fined up to $500,000.These stakes are high, especially as the IRS ramps up crypto enforcement in 2024. To dodge these consequences, double-check any notice for accuracy and act fast: Request a filing extension with Form 4868 if needed (due by April 15, 2025), arrange a payment plan for unaffordable penalties, or dispute the penalty if you believe it’s unjustified. Prompt action can save you from escalating costs and legal headaches.