Crypto Update: Big Beautiful Bill, GENIUS Act, & Crypto Company IPOs

5 Crypto Changes in the Big Beautiful Bill:

1. Wash Sale Rule Applies to Crypto
Previously, crypto investors could sell at a loss and immediately rebuy to harvest tax losses. That loophole is closing, bringing crypto tax treatment in line with equities.

2. Small Crypto Purchases Are Now Tax-Exempt
Gains under $300 per transaction, up to $5,000 annually, are no longer taxed, making it easier to use crypto as a functional currency, especially for stablecoin users.

3. Staking and Mining Tax Deferral
You’ll no longer be taxed on staking or mining rewards until you sell the tokens, removing what many saw as unfair double taxation.

4. Lending Crypto Is No Longer a Taxable Event
Loaning out your crypto (via DeFi or CeFi platforms) won’t trigger a tax bill or reset your cost basis, now treated similarly to loans against equity portfolios.

5. Politicians Can Still Promote Crypto (for Now)
An attempt to ban political figures from “shilling” crypto didn’t make it into the final bill, though it was close.

The Genius Act and Stablecoin Regulation

The Genius Act, which passed the Senate and is heading to the House, introduces fundamental legislation for stablecoins. It sets clear rules about reserves (dollars or treasuries only) and operations. While it doesn’t impact most retail investors directly, it lays the groundwork for broader regulatory clarity in the crypto space.

The Market Structure Bill: Crypto’s Big Break?

The upcoming Market Structure Bill may be the legislation that truly brings crypto into the financial mainstream. Key highlights include:

• Clarifying the roles of the SEC and CFTC
• Defining when a token transitions from a security to a commodity
• Establishing a potential safe harbor period for new tokens to decentralize
• Increasing collaboration between regulators and the crypto industry

This bill is poised to finally give institutional players the green light to adopt crypto more fully.

Crypto IPOs Are Heating Up

Crypto-related companies like Grayscale and Circle have made headlines for their IPO activity. While Grayscale’s high fees may be a red flag for some, Circle (issuer of stablecoin USDC) saw its stock soar post-IPO, despite a sky-high P/E ratio and revenue-sharing agreement with Coinbase. More companies like Kraken and Ripple may follow with public offerings in the near future.

Ripple vs. SEC: A Final Chapter?

The long-standing legal battle between Ripple and the SEC is finally wrapping up. Ripple agreed to pay a $125 million fine (already in escrow), and both parties are dropping their appeals. Though an injunction remains, it’s largely symbolic. This signals a more collaborative tone between regulators and crypto firms moving forward.

Market Outlook: What’s Next for Crypto?

Bitcoin recently rallied to over $120,000, and while a short-term cooldown may follow, many anticipate further upside into late Q3 2025 or early Q4 2025. As Bitcoin peaks, altcoins may follow with their own explosive growth. The next few months could be pivotal for crypto investors.

From legislation to IPOs, it’s clear the crypto industry is maturing. If you’re considering how these changes could affect your portfolio, now’s the time to talk to a fiduciary advisor. Schedule a consultation with one of our financial advisors to learn more.