‘Contrary to popular belief,’ regulation isn’t slowing tokenization — Prometheum CEO
The market for tokenized real-world assets (RWAs) is growing by the day, but contrary to belief, the biggest hurdle to broader adoption isn’t regulation, but a lack of dedicated secondary markets for buying and selling tokenized securities, according to Prometheum founder and co-CEO Aaron Kaplan. In an interview with Cointelegraph, Kaplan drew attention to ARK Invest CEO Cathie Wood’s recent appearance at the Digital Asset Summit in New York, where she said that a lack of regulatory clarity is preventing her company from tokenizing its funds.“Contrary to popular belief, however, the hurdle isn’t ambiguous regulation,” said Kaplan, who noted that the US Securities and Exchange Commission’s (SEC) special purpose broker-dealer framework and Alternative Trading System (ATS) licensing “already provide a regulated pathway for issuing blockchain-native funds that offer efficiency advantages over traditional issuances.”“The real bottleneck lies in the limited market infrastructure for delivering tokenized securities trading to a broad investor base,” he said.Excluding stablecoins, the value of tokenized RWAs has increased by nearly 8% to $19.5 billion over the past 30 days, according to industry data. Private credit and US Treasury debt remain the two largest use cases. The value of tokenized RWAs has grown rapidly over the past year. Source: RWA.xyz“These assets currently sit on a handful of blockchains, but there is still no fully public secondary market where institutional and retail investors can buy, sell, and trade them, as they do with traditional securities on Nasdaq or through a brokerage account like Fidelity,” said Kaplan, who identified two general approaches for building out these platforms. The first is building tokenized securities markets using decentralized finance (DeFi) frameworks, much like what Ondo Finance, Ethena Labs and Securitize are doing.Related: Ethena Labs, Securitize launch blockchain for DeFi and tokenized assetsThe second approach involves integrating tokenization protocols into existing brokerage platforms that operate under SEC-registered entities and are subject to federal securities laws. “Legacy crypto and fintech platforms are already accustomed to facilitating cryptocurrency trading, so you would expect them to seek to broaden their offerings to include tokenized securities,” said Kaplan.While many in the latter camp do not operate digitally, they “won’t cede market share without a fight,” said Kaplan. “Many are already investing in their own tokenization initiatives, or partnering with fintech and crypto firms, to remain competitive.”“What’s at stake is the next wave of users onboarding into the digital asset space […] The question is then, will the brokerage industry enter the digital asset space, or will crypto platforms build the next gen markets for investors to buy and sell digital securities?” As a digital asset trading and custody firm, Prometheum is attempting to bridge the infrastructure gap by building a full-service digital asset securities marketplace. The company claims that securities traded on Prometheum have reduced fees, faster settlement times and increased efficiency.Related: CME Group taps Google Cloud for pilot asset tokenization programInvestors want ‘digital native’ versions of assets they’ve always knownPerhaps the biggest demand driver for tokenized assets among traditional investors is that they want to access “digital native versions of all assets, in addition to crypto tokens, through a single ecosystem they are comfortably using […] to meet a range of financial goals,” said Kaplan.One area where tokenization appears to be gaining traction is in real estate. As Cointelegraph recently reported, luxury and commercial properties are being tokenized all over North America and secondary markets are being established to enable the trading of tokenized shares. A 2024 report by Boston Consulting Group (BCG) called tokenization a “game-changing blockchain use case in financial services” due to its scalability and near-instant transactions. According to BCG managing director and senior partner Sean Park, tokenization could boost investors’ annual returns by roughly $100 billion while increasing the revenue streams of financial institutions. Tokenized RWAs as an investable asset class reached an “inflection point” in 2023. Source: Boston Consulting GroupThe potential of tokenization has even been flagged by the World Economic Forum in a recent article published by Digital Asset co-founder and CEO Yuvan Rooz. In the article, Rooz showed that roughly 10% of the $230 trillion global securities market is eligible for use as collateral. “Tokenization, which improves collateral mobility and capital efficiency, could unlock this untapped capital and optimize intraday liquidity so that funds can be accessed and moved within the same trading day to meet payment and settlement obligations,” said Rooz.Magazine: Block by block: Blockchain technology is transforming the real estate market
Memecoins 2.0: The market crashed, but the billion-dollar circus rolls on
Opinion by: Igor Zemtsov, chief technology officer at TBCCFollowing “Libragate,” memecoin prices crashed, with their market cap falling nearly 60% from 2025’s highs. But meme tokens, dead? They’ve got more lives than a cat on caffeine.Despite the chaos, memecoins were still holding a $47.9-billion market cap as of March 10. It’s not exactly spare change. Meanwhile, degens are still out here “buying the dip” like it’s a Black Friday sale, convinced that absurdly named tokens like Unicorn Fart Dust, Fartcoin and Buttcoin will print them a 100x profit before year’s end.Some call it irrational. Others call it degeneracy. But when has that ever stopped anyone in crypto?Down bad, but not dead yetSure, memecoins aren’t exactly outshining Bitcoin (BTC), Ether (ETH) or Solana (SOL) right now. They’ve been getting absolutely obliterated. Prices have tanked, liquidity has dried up, and traders who thought they’d be sipping cocktails on a yacht by now are busy coping in Telegram groups.Let’s not pretend this is the first time memecoins have been pronounced dead. Every time the world writes them off, they somehow claw their way back — sometimes with an even more absurd rally than before.After all, logic has never been crypto’s strong suit. If it were, we wouldn’t have seen billion-dollar valuations for fart-themed tokens in the first place. And if human nature tells us anything, it’s that people will always chase the next big hype cycle — especially when it comes wrapped in humor and the promise of overnight riches.Memecoins are down bad right now. But dead? Not a chance. The moment another ridiculous trend takes hold, the money will come flooding back. Because in crypto, what goes down eventually goes way back up — often in the most unexpected, meme-fueled ways.Better marketing than serious crypto startupsForget white papers, roadmaps or security audits. Memecoins don’t need any of that. All it takes is a viral meme on X, a 10-minute token launch, and within a few weeks, it could be sitting at a $50-million market cap. Meanwhile, legitimate projects spend years developing products, hiring developers and raising funds, only to watch their tokens struggle to gain traction.Recent: Solana revenue slumps 93% from January high after memecoin bubble burstsFor memecoins, community is everything. The bigger it is, the better the pump. It’s not just the kind that retweets project updates 10 times daily, but one that fully embraces the joke. These communities don’t just speculate — they believe. And when enough people buy the meme, the token pumps.Shiba Inu (SHIB) built a cult following as the so-called Dogecoin (DOGE) killer. It never killed DOGE, but it evolved into a $9-billion token with its own blockchain. Others took an even weirder approach. Fartcoin turned flatulence into finance. Unicorn Fart Dust captured the magic of completely nonsensical branding. And Buttcoin, a 2013 meme mocking Bitcoin, made a comeback to troll the entire industry. The formula is obvious: The more absurd the name, the bigger the hype. Sometimes, “it’s funny” is the only investment thesis you need.Sure, the crash wiped out some gains, but let’s not act like memecoins vanished. They didn’t go to zero, which, in crypto terms, makes them survivors. A strong community, relentless memes and top-tier shitposting can keep even the most ridiculous assets alive.Memecoins are a rebellion against traditional financePeople are investing money in Dogecoin instead of Apple stock, and for good reason. Well, sort of. Crypto has become the go-to escape hatch for those fed up with traditional finance. Banks freeze accounts. Regulators add more red tape. Insider trading runs rampant. Meanwhile, memecoins are a free-for-all, where anyone can win big or lose everything. No middlemen. No rules. Just vibes.The same Buttcoin proves that people will pump anything just for fun. What started as a joke now has a dedicated community trying to make it the next Bitcoin. It’s complete insanity, which is precisely why it works.If the world has gone mad, why not profit from the chaos? With financial markets becoming more centralized, restrictive and controlled, memecoins offer an anarchic alternative. They represent the financial Wild West, where anything goes; even the most absurd assets can see billion-dollar valuations.Memecoins as internet cultureMemecoins have been around since 2013, when Dogecoin launched as a joke about speculative trading. No one — not even its creators — took it seriously until Elon Musk got involved and became its unofficial CEO.That same year, Buttcoin was born from a YouTube video. It wasn’t a token back then, just a meme. But years later, the community decided to turn the joke into an actual cryptocurrency. It exploded because people love jokes — and some believe it could be the next Bitcoin.Each new wave of memecoins pushes the absurdity even further — first DOGE, then Shiba, then Bonk (BONK). Now we have an entire market of tokens inspired by farts, crap and butts. And somehow, they keep outperforming serious projects.As long as people love memes, memecoins will have a place in crypto. It is internet culture that has turned into an asset class.Are memecoins here to stay?Most memecoins start as a joke, but some have found actual use cases. DOGE is already accepted for payments by Tesla, AMC and GameStop. SHIB holders can shop at Gucci, Nordstrom and Whole Foods. Even newer projects like Solcat are launching games to expand their ecosystems.Memecoins aren’t just memes anymore. They’re shaping a new financial reality where virality, speculation and internet culture define value. But let’s address the obvious: The recent crash has slashed valuations, leaving many wondering what’s next.Are they here to stay, or are we watching them fade into irrelevance? If history tells us anything, it’s that memecoins are like cockroaches — resilient, unpredictable and always resurfacing. Investors should brace for more chaos because these tokens are as volatile as ever.Memecoins may not be running the show right now, but let’s be honest: The next big meme token is probably already brewing in a Telegram group, just waiting for its moment to explode (or implode).Opinion by: Igor Zemtsov, chief technology officer at TBCC.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Ethereum price down almost 50% since Eric Trump's 'add ETH' endorsement
Ethereum’s native token, Ether (ETH) has lost almost half its value two months after Eric Trump, son of US President Donald Trump, told his 5.7 million followers that it was a “great time” to add the biggest altcoin to their portfolios.Source: X/Eric TrumpPresident Trump spoils son’s bullish ETH outlookAs of March 31, Ether was trading for as low as $1,820, down approximately 40% since Eric Trump’s bullish tweet.ETH/USD daily price chart. Source: TradingViewMeanwhile, Ether’s crypto market share has plunged from 10.28% at the time of Eric Trump’s X post to 8.39% as of March 31, the lowest since 2020.Ethereum Dominance Index daily chart. Source: TradingViewA series of market headwinds blindsided traders following Eric Trump’s comment.For instance, on Feb. 21, Bybit, a prominent cryptocurrency exchange, suffered a major security breach in which it lost approximately $1.5 billion in Ether, marking the largest cryptocurrency heist to date.President Trump’s escalating tariff war against Canada, Mexico, and China also intensified selling across Ethereum and the broader crypto market. His 25% tariffs on auto imports, which are set to go live on April 3, are further dampening risk sentiment.Michaël van de Poppe, the co-founder of crypto portfolio management firm MN Consultancy, doubted an Ether price rebound in the coming days, adding that the markets should anticipate an ETH bottom when gold price peaks.Source: X/Michaël van de PoppeGold, a traditional risk-off asset, has surged 17.60% year-to-date to reach a record high of $3,085 an ounce.Trump-linked crypto platform grows ETH stashWorld Liberty Finance (WLFI), a decentralized finance firm associated with the Trump family, strategy transferred 73,783 ETH (~$212.60 million at the time) to Coinbase Prime two days after Eric Trump’s X post on Feb. 21.WLFI Ethereum holdings chart. Source: Arkham IntelligenceThe close timing of these events has led to speculation within the crypto community about Eric Trump’s intentions. That is despite WLFI’s clarification that the transfer was part of routine treasury management and not indicative of an intent to sell off their holdings. Source: EmperorWLFI has made several multimillion-dollar crypto purchases just ahead of key industry events tied to President Trump. Notably, the firm acquired $20 million worth of various tokens in the days leading up to the March 7 White House Crypto Summit, raising eyebrows over the timing and potential strategic intent.Similarly, critics have raised concerns about Donald Trump’s new stablecoin, USD1, citing a conflict of interest.WLFI has more than tripled its Ether holdings since the Feb. 23 transfer. However, even this aggressive accumulation—coupled with a broader uptick in whales’ ETH holdings—has done little to reignite bullish sentiment in the Ethereum market.How low can Ethereum price go in April?If technical indicators are any cue, Ether’s price can still go below $1,500 in April, down about 20% from the current price levels.Notably, as of March 30, the ETH/USD pair had entered the breakdown stage of what appears to be a bear flag pattern.ETH/USD daily price chart. Source: TradingViewThis technical setup forms when the price consolidates higher after a sharp downturn and typically resolves when the price breaks below the lower trendline, falling by as much as the previous decline’s height.Applying this technical rule brings $1,490 as Ether’s next downside target in April.Double-bottom may start 35% price reboundBut all hope isn’t lost for the bulls. A sharp rebound from the current support levels at around $1,800 may still invalidate the bear flag setup. Instead, it may trigger a double-bottom pattern, which could help ETH’s price rebound toward $2,500 by April.ETH/USD daily price chart. Source: TradingViewA double bottom typically appears after a prolonged downtrend and is characterized by two distinct troughs near the same price level, followed by a breakout above the interim high—known as the neckline.Related: Ethereum futures premium hits 1+ year low — Is it time to buy the ETH bottom?ETH has printed two bottoms around the $1,800 support zone, with the neckline resistance near $2,094.A decisive break above the neckline could confirm this pattern, staging the price for recovery by as much as the pattern’s maximum height. That puts ETH’s upside target at around $2,500, up 35% from the current prices.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
How to file crypto taxes in the US (2024–2025 tax season)
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.
Centralization and the dark side of asset tokenization — MEXC exec
Tracy Jin, the chief operating officer at the MEXC crypto exchange, warns that tokenizing real-world assets (RWAs) carries a substantial amount of centralized risks that can lead to censorship, liquidity issues, legal uncertainty, cybersecurity problems, and asset confiscation through state or third-party intermediaries.In an interview with Cointelegraph, the executive said that as long as tokenized assets remain under the purview of state regulators and centralized intermediaries, then “tokenization will simply be a new version of old financial infrastructure and not a financial revolution.” Jin added:”Most tokenized assets will be issued on permissioned or semi-centralized blockchains. This gives authorities the power to issue restrictions or confiscate assets. The tokenization of assets such as real estate or bonds is still tied to the national legal system.””If the property or company behind the token is local, in a country with an unstable legal environment or high political volatility, the risk of confiscation increases,” the executive continued.RWA tokenization is projected to become a multi-trillion sector in the next decade as the world’s assets come onchain, which will increase the velocity of money and extend the reach of capital markets worldwide.The total market cap of the RWA sector. Source: RWA.XYZRelated: Dubai Land Department begins real estate tokenization projectEstimates of the future RWA market differ dramaticallyTokenized real-world assets include stocks, bonds, real estate, intellectual property rights, energy, art, private credit, debt instruments, fiat currency, commodities, and collectibles.According to RWA.XYZ, there are currently over $19.6 billion in tokenized real-world assets onchain, excluding the stablecoin sector, which surpassed a $200 billion market cap in December 2024.A research report from Tren Finance polled large financial institutions including Citi, Standard Chartered, and McKinsey & Company; the report found that the participants predicted the RWA market to reach anywhere between $4 trillion to $30 trillion by 2030.Financial institutions provide different forecasts for the future of the tokenized RWA market. Source: Tren FinanceMcKinsey & Company predicted the RWA sector will encompass between $2 trillion to $4 trillion by 2030 — a relatively modest assessment compared to other forecasts.Meanwhile, institutions like Standard Chartered and executives at the blockchain network Polygon say that the RWA market will reach $30 trillion in the next decade.Magazine: Real-life yield farming: How tokenization is transforming lives in Africa
Potential Bitcoin price fall to $65K ‘irrelevant’ since central bank liquidity is coming — Analyst
Bitcoin’s (BTC) 7% decline saw the price drop from $88,060 on March 26 to $82,036 on March 29 and led to $158 million in long liquidations. This drop was particularly concerning for bulls, as gold surged to a record high at the same time, undermining Bitcoin’s “digital gold” narrative. However, many experts argue that a Bitcoin rally is imminent as multiple governments take steps to avert an economic crisis.The ongoing global trade war and spending cuts by the US government are considered temporary setbacks. An apparent silver lining is the expectation that additional liquidity is expected to flow into the markets, which could boost risk-on assets. Analysts believe Bitcoin is well-positioned to benefit from this broader macroeconomic shift.Source: MihaimihaleTake, for example, Mihaimihale, an X social platform user who argued that tax cuts and lower interest rates are necessary to “kickstart” the economy, particularly since the previous year’s growth was “propped up” by government spending, which proved unsustainable.The less favorable macroeconomic environment pushed gold to a record high of $3,087 on March 28, while the US dollar weakened against a basket of foreign currencies, with the DXY Index dropping to 104 from 107.40 a month earlier.Additionally, the $93 million in net outflows from spot Bitcoin exchange-traded funds (ETFs) on March 28 further weighed on sentiment, as traders acknowledged that even institutional investors are susceptible to selling amid rising recession risks.US inflation slows amid economic recession fearsThe market currently assigns a 50% probability that the US Federal Reserve will cut interest rates to 4% or lower by July 30, up from 46% a month earlier, according to the CME FedWatch tool.Implied rates for Fed Funds on July 30. Source: CME FedWatchThe crypto market is presently in a “withdrawal phase,” according to Alexandre Vasarhelyi, the founding partner at B2V Crypto. Vasarhelyi noted that recent major announcements, such as the US strategic Bitcoin reserve executive order mark progress in the metric that matters the most: adoption.Vasarhelyi said real-world asset (RWA) tokenization is a promising trend, but he believes its impact remains limited. “BlackRock’s billion-dollar BUIDL fund is a step forward, but it’s insignificant compared to the $100 trillion bond market.” Vasarhelyi added:“Whether Bitcoin’s floor is $77,000 or $65,000 matters little; the story is early-stage growth.”Gold decouples from stocks, bonds and BitcoinExperienced traders view a 10% stock market correction as routine. However, some anticipate a decline in “policy uncertainty” by early April, which would reduce the likelihood of a recession or bear market.Source: WarrenPiesWarren Pies, founder of 3F Research, expects the US administration to soften its stance on tariffs, which could stabilize investor sentiment. This shift may help the S&P 500 stay above its March 13 low of 5,505. However, market volatility remains a factor as economic conditions evolve.Related: Bitcoin price falls toward range lows, but data shows ‘whales going wild right now’For some, the fact that gold decoupled from the stock market while Bitcoin succumbed to “extreme fear” is evidence that the digital gold thesis was flawed. However, more experienced investors, including Vasarhelyi, argue that Bitcoin’s weak performance reflects its early-stage adoption rather than a failure of its fundamental qualities.Vasarhelyi said,“Legislative shifts pave the way for user-friendly products, trading some of crypto’s flexibility for mainstream appeal. My take is adoption will accelerate, but 2025 remains a foundation year, not a tipping point.”Analysts view the recent Bitcoin correction as a reaction to recession fears and the temporary tariff war. However, they expect these factors to trigger expansionist measures from central banks, ultimately creating a favorable environment for risk-on assets, including Bitcoin.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Bitcoin adoption in EU limited by ‘fragmented’ regulations — Analysts
Institutional adoption of Bitcoin in the European Union remains sluggish, even as the United States moves forward with landmark cryptocurrency regulations that seek to establish BTC as a national reserve asset.More than three weeks after President Donald Trump’s March 7 executive order outlined plans to use cryptocurrency seized in criminal cases to create a federal Bitcoin (BTC) reserve, European companies have largely remained silent on the issue.The stagnation may stem from Europe’s complex regulatory regime, according to Elisenda Fabrega, general counsel at Brickken, a European real-world asset (RWA) tokenization platform.“European corporate adoption remains limited,” Fabrega told Cointelegraph, adding:“This hesitation reflects a deeper structural divide, rooted in regulation, institutional signaling and market maturity. Europe has yet to take a definitive stance on Bitcoin as a reserve asset.”Bitcoin’s economic model favors early adopters, which may pressure more investment firms to consider gaining exposure to BTC. The asset has outperformed most major global assets since Trump’s election despite a recent correction.Asset performance since Trump’s election victory. Source: Thomas FahrerDespite Trump’s executive order, only a small number of European companies have publicly disclosed Bitcoin holdings or crypto services. These include French banking giant BNP Paribas, Swiss firm 21Shares AG, VanEck Europe, Malta-based Jacobi Asset Management and Austrian fintech firm Bitpanda.A recent Bitpanda survey suggests that European financial institutions may be underestimating crypto investor demand by as much as 30%.Related: Friday’s US inflation report may catalyze a Bitcoin April rallyEurope’s “fragmented” regulatory landscape lacks clarityThe EU’s slower adoption appears tied to its patchwork of regulations and more conservative investment mandates, analysts at Bitfinex told Cointelegraph. “Europe’s institutional landscape is more fragmented, with regulatory hurdles and conservative investment mandates limiting Bitcoin allocations.”“Additionally, European pension funds and large asset managers have been slower to adopt Bitcoin exposure due to unclear guidelines and risk aversion,” they added.Related: Bitcoin ‘more likely’ to hit $110K before $76.5K — Arthur HayesBeyond the fragmented regulations, European retail investor appetite and retail participation are generally lower than in the US, according to Iliya Kalchev, dispatch analyst at digital asset investment platform Nexo.Europe is “generally more conservative in adopting new financial instruments,” the analyst told Cointelegraph, adding:“This stands in stark contrast to the deep, liquid, and relatively unified US capital market, where the spot Bitcoin ETF rollout was buoyed by strong retail demand and a clear regulatory green light.”iShares Bitcoin ETP listings. Source: BlackRockBlackRock, the world’s largest asset manager, launched a Bitcoin exchange-traded product (ETP) in Europe on March 25, a development that may boost institutional confidence among European investors.Magazine: Bitcoiner sex trap extortion? BTS firm’s blockchain disaster: Asia Express
Greedy L2s are the reason ETH is a 'completely dead' investment: VC
Ether’s (ETH) declining appeal as an investment comes from layer-2’s draining value from the main network and a lack of community pushback on excessive token creation, a crypto venture capitalist says.“The #1 cause of this is greedy Eth L2s siphoning value from the L1 and the social consensus that excess token creation was A-OK,” Castle Island Ventures partner Nic Carter said in a March 28 X post.Ether “died by its own hand”“ETH was buried in an avalanche of its own tokens. Died by its own hand,” Carter said. He said this in response to Lekker Capital founder Quinn Thompson’s claim that Ether is “completely dead” as an investment.Source: Quinn Thompson“A $225 billion market cap network that is seeing declines in transaction activity, user growth and fees/revenues. There is no investment case here. As a network with utility? Yes. As an investment? Absolutely not,” Thompson said in a March 28 X post. The ETH/BTC ratio — which shows Ether’s relative strength compared to Bitcoin (BTC) — is sitting at 0.02260, its lowest level in nearly five years, according to TradingView data. At the time of publication, Ether is trading at $1,894, down 5.34% over the past seven days, according to CoinMarketCap data.Ether is down 17.94% over the past 30 days. Source: CoinMarketCapMeanwhile, Cointelegraph Magazine reported in September 2024 that fee revenue for Ethereum had “collapsed” by 99% over the previous six months as “extractive L2s” absorbed all the users, transactions and fee revenue while contributing nothing to the base layer. Around the same time, Cinneamhain Ventures partner Adam Cochran said Based Rollups could solve the issue of Ethereum’s layer-2 networks pulling liquidity and revenue from the blockchain’s base layer.Cochran said Based Rollups could “directly impact the monetization of Ethereum by making a pretty fundamental change to incentive structures.”Related: Ethereum futures premium hits 1+ year low — Is it time to buy the ETH bottom?Despite optimism toward the end of last year about Ether reaching $10,000 in 2025 — especially after reaching $4,000 in December, the same month Bitcoin touched $100,000 for the first time — it has since seen a sharp decline alongside the broader crypto market downturn.Standard Chartered added to the bearish outlook via a March 17 client letter, which revised down their end of 2025 ETH price estimate from $10,000 to $4,000, a 60% reduction. However, several crypto traders, including pseudonymous traders Doctor Profit and Merlijn The Trader, are “insanely bullish” and argue that Ether could be the “best opportunity in the market.”Source: Merlijn The TraderMagazine: Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder
Senators press regulators on Trump’s WLFI stablecoin
In a recent letter to the Federal Reserve and the Office of the Comptroller of the Currency, five Democratic senators have raised concerns about the potential conflicts of interest surrounding a stablecoin launched by World Liberty Financial (WLFI), a crypto firm backed by US President Donald Trump’s family.
The letter, signed by Massachusetts Senator Elizabeth Warren and four other Democrats, highlights the need for regulatory agencies to carefully consider the risks posed by WLFI and its stablecoin, USD1. This comes as Congress is currently considering legislation to regulate stablecoins through the GENIUS Act, which would give the OCC and Federal Reserve oversight over stablecoin issuers like WLFI.
However, the senators also point out the potential conflict of interest arising from President Trump’s involvement in the venture. As the project’s website states, Trump and his family members control 60% of the company’s equity interests. This raises concerns about the president’s financial gain from the success of the stablecoin, especially as he has recently signed an executive order giving himself unprecedented control over federal agencies.
The launch of a stablecoin tied to a sitting president presents unprecedented risks to the financial system and the integrity of decisions made by the Fed and OCC. This is a concern that must be addressed and carefully considered by regulatory agencies.
Since its launch in 2024, WLFI has raised $550 million through two public token sales and recently confirmed the launch of its first stablecoin on the BNB Chain and Ethereum. The president’s son, Donald Trump Jr., has also been actively promoting the project, raising further questions about potential conflicts of interest and insider trading.
As the project continues to gain attention and funding, it is crucial for regulatory agencies to closely monitor and address any potential conflicts of interest. The integrity of the financial system and the trust of investors are at stake, and it is the responsibility of regulatory agencies to ensure fair and ethical practices in the crypto industry.
Elon Musk’s ‘government efficiency’ team turns its sights to SEC: Report
Elon Musk, the CEO of Tesla, is known for his innovative ideas and unconventional approach to business. His latest venture, the Department of Government Efficiency team (DOGE), has caught the attention of the media and the public alike. This team, which is not an official US government department, is focused on cutting costs and improving efficiency in government agencies.
Recently, it was reported that the DOGE team has set its sights on the Securities and Exchange Commission (SEC). According to a Reuters report, the team reached out to the SEC and was granted access to the commission’s systems and data. The SEC also plans to establish a liaison team to work with the DOGE representatives.
The intentions of the DOGE team are not immediately clear, but it seems that they are looking to streamline processes and save taxpayers’ money. This aligns with the executive order signed by former US President Donald Trump, allowing DOGE to implement cost-cutting measures. However, some of Musk’s efforts, such as attempting to fire staff at the US Agency for International Development and shutting down the Consumer Financial Protection Bureau, have faced legal challenges.
Despite the controversy surrounding the DOGE team’s actions, their approach to government efficiency has garnered attention and sparked discussions about the role of private companies in government operations. This is a developing story, and more information will be added as it becomes available.
Musk’s involvement in government affairs has been met with both praise and criticism. While some see his efforts as a way to bring fresh perspectives and innovative solutions to government operations, others question the legality and ethics of his actions. Only time will tell the impact of the DOGE team’s involvement with the SEC and other government agencies.
In the meantime, the public will continue to closely follow the developments of this unconventional team and their efforts to improve government efficiency. Stay tuned for updates on this intriguing story.