How Is Crypto Taxed in the US While Agencies Lead the Rules?
Here's the short version: if you've been waiting for Congress to rewrite the rules before sorting out your crypto taxes, don't. A lawyer at 1inch expects US regulators, not lawmakers, to drive the next phase of crypto policy whatever the midterm election delivers. That makes the question of how crypto is taxed in the US a matter of existing tax rules and good records, not of pending legislation.
The comments came as voting in the US midterm elections got underway and control of Congress hung in the balance. Maylea Ma, deputy general counsel at 1inch, said the election could reshape the path forward for the stalled CLARITY Act, but that "real movement" in US digital-asset regulation over the next few years will come from the Securities and Exchange Commission, the Commodity Futures Trading Commission and the Treasury. This article walks through what was said, what has actually happened at those agencies, and what it means for ordinary filers who need to calculate crypto taxes and produce an accurate crypto tax report.
What was said about the midterms and crypto regulation
The central claim is simple and a little uncomfortable for anyone hoping for a tidy statutory fix. Ma argued that regardless of who wins control of Congress, federal agencies will set the pace. She said those agencies have been engaging more with crypto projects, which is a change from a period when many projects felt they were being regulated mainly through enforcement.
Why agency engagement is not the same as a law
Engagement is not stability. Ma was direct about the gap: the long-term goal remains a statute that can't be reversed every time a government changes. Agency positions, guidance and exemptions can be revised or withdrawn by a future administration. A law passed by Congress is far harder to unwind.
Michael Ho, co-founder of D3, the team behind Doma Protocol, made the same point from an investor angle. With the market structure bill stalled, he said, US crypto policy keeps resting on agency guidance that a future administration can reverse, and that keeps serious capital waiting. His view is that clear rules written into law are what will bring institutional capital into tokenized real-world assets.
Where the CLARITY Act stands
The source describes the CLARITY Act as stalled. It also notes that the Senate failed to advance the bill, and that the CFTC acted on Sept. 17, two days after that failure. The election could change the legislative path, but nobody quoted in the piece is predicting a quick resolution.
What the agencies have already done
The source points to concrete agency activity in recent months, which is why the "agencies lead" argument carries weight. These are the items it lists, and nothing beyond them should be assumed.
SEC actions in August and September
In August, the SEC put forward measures that include exemptions for certain token offerings and a safe harbor from treatment as investment contracts. In September, it followed with further action covering token buybacks, crypto networks and staking receipt tokens. The source doesn't give the full text of these measures, so check the SEC's own publications before relying on any detail of how they apply.
CFTC action after the Senate vote
The CFTC moved on Sept. 17, two days after the Senate failed to advance the CLARITY Act. The source doesn't spell out the content of that step in the excerpt, but the timing tells its own story: when the legislative route stalled, an agency acted.
Treasury's role
Ma named the Treasury alongside the SEC and CFTC as a main driver of change. For individual taxpayers, that matters most, because the Treasury is the department that houses the Internal Revenue Service. The source doesn't describe a specific new Treasury action, so treat this as a signal about where influence sits, not as news of a new tax rule.
What this means for how crypto is taxed in the US
None of the agency moves described in the source changes how your gains are calculated. The SEC and CFTC deal mainly with how tokens and markets are classified and supervised. Your tax bill is still determined by the tax authority's rules, and nothing in this story announces a change to them. That's the key point for anyone searching for how crypto is taxed in the US: the tax rules you filed under last year are the ones to work from now, unless the IRS or Treasury publishes something new.
The practical tax picture for an individual filer
In general terms, the IRS treats digital assets as property. That means disposing of crypto, whether by selling it, swapping it for another token or spending it, can create a taxable gain or loss measured against what you paid for it. Income such as rewards or payment for work is generally reported at its value when you receive it. Confirm the current details, forms and thresholds on the IRS website, since they can change from year to year.
Why do the SEC's staking and token-related measures matter for this? They may affect how certain tokens are described in law, but classification by a securities regulator doesn't automatically rewrite tax treatment. Don't assume a safe harbor or exemption in securities law changes what you owe. If you hold staking receipt tokens or have taken part in token offerings, keep careful records and ask a qualified tax professional how your specific facts are treated.
Why reversible guidance is a record-keeping problem
Ho's warning that agency guidance can be reversed has a quiet consequence for filers. If positions shift between administrations, you may need to show what you did and why, years later. The best protection is a clean paper trail: dates, amounts, asset names, wallet addresses, exchange statements and the cost of each acquisition. Gaps in cost basis are the most common reason a crypto tax report ends up wrong.
What to do now if you hold or trade crypto
Waiting for Congress isn't a plan. The following steps work whether the midterms produce a new legislative push or leave things where they are.
Get your records in order
- Export full transaction histories from every exchange and wallet you've used, including ones you no longer use.
- Reconcile transfers between your own wallets so they aren't mistaken for sales.
- Note the date and USD value of every receipt of rewards or payments.
- Keep records of fees, since they can affect your cost basis and proceeds.
Use a calculator carefully
A crypto tax calculator or crypto tax software can speed up the work of turning thousands of transactions into a figure you can report. Treat any tool as a starting point, not an answer. Check that imported data is complete, that transfers are matched properly and that the cost basis method suits your situation. If the numbers look odd, trace them back to source records before you file.
Prepare to file
If you're working out how to file crypto taxes, start by gathering your records, then calculate gains and losses for each disposal and report income received in crypto. Use the forms the IRS directs for digital assets and for capital gains, and answer the digital asset question on your return accurately. If you've missed something in past years, see our piece on the IRS plans for a faster, cheaper crypto tax disclosure and the related bill that would let investors fix past tax mistakes. Both are about correcting earlier filings, though neither should be assumed to be available to you without checking the current status.
What accountants and firms should take from this
Although this piece is aimed at individual filers, the story matters to the professionals who prepare their returns. If agency guidance is the main source of change, practitioners should expect rules to arrive through notices, statements and exemptions rather than through a single big statute. That favours firms that monitor regulators closely and document the basis for each position they take on a client's behalf.
Documenting positions under shifting guidance
Where a client's treatment depends on agency guidance, keep a dated note of which guidance was relied on. If it's later reversed, you'll be able to show what the position was at the time. For tokens affected by SEC exemptions or safe harbors, record the reasoning for your tax treatment separately from the securities analysis, since the two don't always move together.
Legislative clarity still matters
The tax side of the debate hasn't gone away. For context on lobbying for clearer tax rules, see our coverage of the Blockchain Association's call for crypto tax clarity as the big bill stalls. For wider guidance on reporting obligations, our crypto compliance and reporting hub collects the core material.
What to watch after the vote
Several things are worth tracking over the coming months, and all of them follow directly from the source.
Signals that would matter
- Whether the CLARITY Act gets a renewed push once the makeup of Congress is settled.
- Further SEC statements on token offerings, buybacks, networks and staking receipt tokens.
- Any new CFTC or Treasury steps, and whether the IRS publishes anything touching digital assets.
How to stay ready
The honest takeaway is that uncertainty is the baseline. The people quoted expect agencies to keep moving, and they also expect that agency-made rules remain reversible. For you, that means filing on the rules that exist today, keeping documentation strong, and revisiting your position if the IRS or Treasury publishes something new. Nobody in the source suggests a change to how gains are taxed is imminent, so don't delay your filing waiting for one.
Frequently asked questions
How is crypto taxed in the US right now?
In general, the IRS treats digital assets as property, so selling, swapping or spending crypto can create a taxable gain or loss, and income received in crypto is generally reported at its value when received. Check the IRS website for current forms and rules. Nothing in the midterm coverage announces a change to this.
Will the midterm elections change my crypto taxes this year?
The source doesn't say so. The election could affect the path of the stalled CLARITY Act, but that bill is about market structure. Your filing for the current period should follow the rules in force today.
Do SEC exemptions or safe harbors change how I report crypto gains?
Not automatically. SEC measures such as exemptions for certain token offerings deal with securities law. Tax treatment is set by tax authorities, so keep reporting under existing IRS rules and ask a qualified professional about your specific tokens.
Should I use a crypto tax calculator to calculate crypto taxes?
A calculator can save a lot of time, especially with many transactions. Verify the imported data, match transfers between your own wallets and check the cost basis method before you rely on the output for a crypto tax report.
Why does it matter that agency guidance can be reversed?
Because a future administration could change or withdraw it. That's why good records matter: if positions shift, you can still show what you did and the basis for it at the time.
Source: Cointelegraph Regulation