In January 2025, lawmakers passed the GENIUS Act to set clear rules for digital currencies like Bitcoin and Ethereum. This change aims to make it easier to know how to report gains and losses on your crypto investments.
Clearer Tax Rules for Crypto
The new law defines when you owe taxes on crypto. A tax is money you pay to the government based on your income, sales, or profits. Under these rules, you report any time you trade, sell, or use crypto to buy something. That means every transaction could count as a taxable event.
Under the GENIUS Act, crypto held longer than a year may qualify for a lower rate called a long-term capital gain. A capital gain is the profit you make when you sell an asset. Paying a lower rate can save you money if you hold coins or tokens for more than 12 months.
What You Can Do Now
Keep good records of every crypto transaction, including dates, amounts, and the value in dollars when you bought and sold. Consider using a tracking app that compiles this data for you. If you are unsure, talk to a tax expert who knows digital currency rules.
By staying organized and informed, you can follow the new GENIUS Act rules and avoid surprises at tax time.
Crystal L. Gunn is a Financial Healer, Licensed Life Insurance Producer, and founder of the Financial Wisdom Institute, the Archer Wealth Group, and the Amazing Woman Network. She helps individuals and communities heal their relationship with money through a liberatory, ancestral, and somatic lens. Ready to discover which financial wound has been running your money? Visit financialwisdominstitute.com/liberation-tools
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