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- IRS Delays Implementation of Crypto Tax Reporting Until 2026
IRS Delays Implementation of Crypto Tax Reporting Until 2026
News on the Blockchain
January 03, 2025
🌍 Daily Crypto Market Overview
Global Stats:
Cryptocurrencies: 2.4M+
Exchanges: 773
Market Cap: $3.39T (+0.63%)
24h Volume: $117.05B (+11.82%)
Bitcoin Dominance: 56.3%
Ethereum Dominance: 12.2%
ETH Gas Price: 57 Gwei
Fear & Greed Index: 57 (Neutral)
🪙 Top 5 Cryptocurrencies by Market Cap:
Name | Price | 24h Change | Market Cap | 24h Volume |
|---|---|---|---|---|
Bitcoin (BTC) | $96,288.89 | +0.64% | $1.91T | $41.44B |
Ethereum (ETH) | $3,434.27 | +0.68% | $413.85B | $20.2B |
Tether (USDT) | $0.9992 | +0.05% | $137.13B | $94.89B |
BNB (BNB) | $701.72 | -0.57% | $101.05B | $1.69B |
Solana (SOL) | $208.23 | +1.25% | $100.56B | $3.41B |
💹 Market Highlights:
Total DeFi Volume: $8.75B (7.48% of 24h volume)
Stablecoins Volume: $107.87B (92.16% of 24h volume)
Coin with Highest % Change: TROY (+39.18%)
📈 Preview On Today’s News:
- IRS Delays Implementation of Crypto Tax Reporting Until 2026
- Morgan Stanley’s E-Trade Eyes Crypto Trading Services Amid Positive Regulatory Outlook
- Do Kwon Pleads Not Guilty to Fraud Charges Over Terra Luna Collapse
Keep reading below for more!
Today’s News:
1)
IRS Delays Implementation of Crypto Tax Reporting Until 2026
On January 2, 2025, the Internal Revenue Service (IRS) announced the postponement of cryptocurrency tax reporting requirements, specifically the cost-basis rule, until December 2026. This delay benefits American crypto investors by providing additional time to navigate the currently unclear regulatory environment and coincides with the incoming pro-crypto administration under President-elect Donald Trump, which is expected to establish more definitive regulatory standards. The decision follows a significant year for cryptocurrencies in 2024, highlighted by the approval of the first US crypto-based ETF and Bitcoin reaching a six-figure price milestone. By extending the implementation of the First In, First Out (FIFO) capital gains calculation method, the IRS aims to better adapt to the growing mainstream acceptance and evolving nature of digital assets. However, the delay does not absolve individuals from their existing tax obligations, as crypto income, gains, and losses for 2023 and 2024 must still be reported.
The IRS has extended the deadline for crypto tax reporting requirements, including the cost-basis rule, to December 2026, providing more time for regulatory clarity under the incoming pro-crypto administration.
Cryptocurrency investors must continue to report their crypto income, gains, and losses for 2023 and 2024, as existing tax obligations remain unchanged despite the delay.
2)
Morgan Stanley’s E-Trade Eyes Crypto Trading Services Amid Positive Regulatory Outlook
In the wake of significant growth in the digital asset sector, Morgan Stanley’s E-Trade is reportedly exploring the introduction of cryptocurrency trading services, according to a January 2, 2025 report by Joshua Ramos. This strategic consideration is influenced by the anticipated favorable regulatory environment under the incoming US President-elect Donald Trump, which is expected to benefit the cryptocurrency industry. Building on a strong 2024, marked by the launch of a crypto-based ETF and Bitcoin reaching a six-figure price, E-Trade aims to become one of the largest financial firms offering crypto trading, positioning itself alongside major players like Coinbase. Morgan Stanley has already demonstrated its commitment to the crypto market by holding $272 million in spot Bitcoin ETFs, signaling confidence in the asset class’s future growth and providing a significant entry point for mainstream investors.
Strategic Expansion: Morgan Stanley’s E-Trade is considering launching cryptocurrency trading services to capitalize on the growing digital asset market and anticipated favorable regulations under the new administration.
Market Positioning: By entering the crypto trading space, E-Trade aims to compete with established exchanges like Coinbase and offer mainstream investors a significant entry point, supported by Morgan Stanley’s existing investments in spot Bitcoin ETFs.
3)
Do Kwon Pleads Not Guilty to Fraud Charges Over Terra Luna Collapse
In his first court appearance in the United States since his extradition from Montenegro, Do Kwon, founder of Terra Luna and TerraUSD, pleaded not guilty to nine counts of securities, commodities, and wire fraud related to the $40 billion collapse of Terra Luna in 2022. Arrested in March 2023 for attempting to flee Montenegro with falsified documents, Kwon is now facing prosecution in the same New York court that convicted FTX founder Sam Bankman-Fried. The Terra Luna collapse significantly impacted the cryptocurrency industry, occurring amidst a promising 2025 for crypto with major milestones like Bitcoin reaching a six-figure price and the approval of crypto-based ETFs in the US.
Legal Proceedings: Do Kwon has officially entered a not guilty plea to nine fraud charges in a New York court, following his extradition from Montenegro where he was arrested for using fake documents.
Industry Impact: The $40 billion Terra Luna collapse, alongside the conviction of FTX’s Sam Bankman-Fried, has profoundly affected the cryptocurrency sector, even as the industry experiences significant growth and optimism in 2025.
