Taxation and Blockchain & Cryptocurrency partner Brett Cotler was quoted in a Crowdfund Insider article titled, “IRS Pauses Crypto Cost-Basis Reporting Rules.”

Brett stated, “This relief will be helpful for investors that hold crypto on an exchange or another platform that is subject to 1099 reporting. Without this relief, those taxpayers could be subject to the default FIFO rules unless the brokers allow for specific identification. For 2025, the specific identification can occur on the taxpayer’s own books and records (similar to self-hosted wallets). Zooming out, this also gives the industry a little breathing room to see if the incoming Trump administration will look at the 1099-DA reporting rules. It is possible that the crypto-friendly campaign rhetoric could turn into less burdensome tax reporting for brokers and for investors.”

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Brett R. Cotler

(212) 574-1269
cotler@sewkis.com

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