The GENIUS Act, signed into law in January 2025, sets new rules for buying, selling, and reporting cryptocurrency. It aims to give clear guidelines for digital assets and protect investors.
Streamlined Reporting
Under the act, crypto exchanges must share transaction details with the IRS. This means you’ll see your gains and losses automatically on tax forms.
Capital gains are the profit you make when you sell an investment.
Cost Basis Made Clear
The law requires exchanges to track your cost basis—the original amount you paid for your crypto. This helps you calculate your profit more accurately and may lower your tax bill.
New Wallet Rules
If you hold crypto in a personal wallet, you’ll need to report transfers in and out each year. That means keeping a simple spreadsheet or using a tracking app to log dates, amounts, and values in dollars.
What It Means for Your Investments
Clear rules can boost confidence and attract more investors. Better record-keeping can also help you spot trends, so you make smarter buy or sell decisions.
Tips to Stay Compliant
1. Use reputable tracking software to record each trade.
2. Keep receipts or screenshots of transactions.
3. Consult a tax professional if you’re unsure about reporting thresholds.
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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