Crypto has gone quite mainstream, and crypto tax laws are trying to keep pace. Whether you’re a casual investor or a small business owner transacting in cryptocurrency, it’s critical to understand current crypto tax laws and how they may be changing. 

Crypto Taxes Today

While the technology feels new, the IRS already treats most digital assets under familiar rules. As of June 30, 2026, the IRS treats virtual currency as property for federal income tax purposes. This means that:

• When selling virtual currency, any capital gain or loss on the sale, subject to any limitations on the deductibility of capital losses, must be recognized. 
• If held for less than one year before selling, the cryptocurrency is subject to short-term capital gains or losses, which are taxed as ordinary income. 
• Cryptocurrency paid to an employee or independent contractor is considered wages or income and is subject to those applicable taxes or withholdings. 
• Accepting crypto for goods or services creates ordinary business income, and later disposing of those coins can create additional capital gains or losses.

Your cost basis and the fair market value are essential components of determining your crypto tax obligations. So are the nature and timing of your transactions. Was the crypto received for services, staking rewards, mining, airdrops after a hard fork, or as wages? And then there are the special markets. As Morgan Stanley insights point out, “Crypto futures and certain exchange-traded products may generate taxable income even if you do not sell, due to mark-to-market rules.”

If terms like “hard fork” leave you scratching your head (don’t worry, you’re not alone), then you can see why this area has been “virtually” “unmined” by mainstream taxpayers for so long. 

What’s Changing

Reporting has already changed for 2025 onward. Digital assets, including cryptocurrency, now have their own form—Form 1099-DA—for reporting gross proceeds from sales and certain exchanges. Beginning in 2026, custodial “crypto brokers” must add cost basis to their reporting to make gain/loss calculations much clearer. 

There are more changes likely. CoinDesk’s Nikhilesh De has called this summer of 2026 the “summer of crypto (regs),” citing several U.S. legislative hearings and proposals that could affect crypto tax areas. 

And there are more than just U.S. regulations to worry about. As PwC reports, “Crypto transactions are becoming more visible to tax authorities as reporting obligations expand and cross-border information sharing increases…Businesses may want to reassess how crypto-related activities are reflected in their tax and operating models, particularly how transaction data is captured.” 

Questions to Ask

Crypto may feel experimental, but the tax treatment is settling into something very traditional: property, income, documentation, and matching IRS forms. How can you proceed? A few practical steps for both casual investors and business owners can include:

• Centralizing your crypto records: trades, transfers, fees, and any coins received for services or wages.
• Asking your exchange how it plans to handle 1099‑DA and basis reporting, and making sure your account profile and tax forms are up to date.
• Coordinating tax, bookkeeping, and payroll so you’re applying consistent treatment to digital assets across your systems.

For most taxpayers, crypto tax changes aren’t as scary as they sound. The opportunity is to get ahead of the changes so your return—whether personal, business, or both—doesn’t become messier come tax filing season.

Feel free to contact us with questions, or visit us online at www.bankler.com

Photo purchased from Shutterstock | July 21, 2026