Crypto taxes in the United States have come a long way since the early days of Bitcoin. In 2025, the IRS has doubled down on enforcement, guidance has expanded (albeit slowly), and taxpayers are under increasing scrutiny. Whether you’re a casual investor, a DeFi degen, or a Web3 entrepreneur, understanding your tax obligations is now more important than ever.
Stricter Enforcement from the IRS
The IRS has made it clear: crypto is a top enforcement priority. With improved blockchain analysis tools and collaborations with private firms, the agency is better equipped to identify unreported transactions. In 2024, thousands of warning letters were sent, and the momentum continues in 2025 with expanded audits, especially targeting:
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Unreported capital gains on centralized and decentralized exchanges
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Undeclared staking and mining income
- Use of crypto in commerce without proper tracking of cost basis
Filers should now expect to see the crypto question not just on the 1040, but on additional schedules depending on complexity and activity level.
Key Changes in 2025
While the IRS hasn’t issued groundbreaking new legislation, there have been several important developments in how crypto is taxed:
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Broker Reporting Delays: The controversial broker reporting rules under the Infrastructure Bill were delayed again. Exchanges are lobbying for clearer definitions of who qualifies as a “broker.” Expect this to roll out in 2026, but best to prepare now.
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Form 1099-DA (Digital Asset): While still unofficial, draft versions of the new 1099 for digital assets have been circulated. Some exchanges are already voluntarily issuing transaction summaries.
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DAOs & Entity Classification: The IRS has hinted at new rules to classify certain DAOs as partnerships or corporations for tax purposes. This could impact liability and reporting obligations.
DeFi and NFTs Still a Grey Zone
Decentralized finance remains a legal and tax grey area. Lending, staking, liquidity pools, and perpetuals are all taxable, but the exact timing and classification are open to interpretation. The IRS still hasn’t provided formal guidance on:
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Wrapping and unwrapping tokens
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Layer 2 bridging
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Auto-compounding vaults
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Royalties from NFTs
This leaves users to rely on best practices and conservative interpretations — or risk future audits.
Tax-Loss Harvesting Still a Big Opportunity
For traders and long-term holders alike, tax-loss harvesting remains one of the few tools available to reduce tax liability. Because crypto is currently treated as property (not a security), the wash sale rule does not apply — allowing you to sell at a loss and immediately buy back the same asset.
This is particularly valuable for those holding underperforming NFTs or altcoins. However, there are whispers that Congress could extend the wash sale rule to digital assets. Stay alert.
What You Should Be Doing Now
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Track everything: Every trade, airdrop, and transfer should be recorded with cost basis and timestamp.
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Use crypto tax professionals: Software may be useful, but a human review is essential — especially with complex DeFi activity.
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Prepare for audits: Keep clean records. If you get selected, the IRS will likely want to see your wallet addresses, exchange CSVs, and methodology used for calculating gains and income.
Looking Ahead
Crypto taxation in the US is only going to get more complex. As regulators catch up with technology, expect greater clarity but also more obligations. Whether you’re investing casually or operating a Web3 business, now is the time to get compliant and optimize your strategy.
Need help with crypto taxes?
Count DeFi specializes in crypto tax reporting, optimization, and audit readiness. Book a call today to get started.