IRS Delays Crypto Tax Rules as BlackRock Joins Stablecoin Race

• IRS delays new crypto tax cost basis rules to December 2026.
• BlackRock-backed stablecoin receives approval for Frax Finance’s FRX USD.
• The crypto market shows early signs of recovery in 2025, with Bitcoin and altcoins soaring.

The Internal Revenue Service (IRS) has announced a delay in enforcing new crypto cost-basis reporting rules, pushing the start date to December 31, 2026. This gives brokers more time to adapt to the new regulations.

In a recent Thinking Crypto podcast, host Tony Edward analyzed how the rules would have required centralized crypto platforms to provide detailed tax accounting for cryptocurrency transactions.

The delay comes after brokers and platforms requested additional time to adjust to the complex regulatory changes. These changes were initially set to begin at the end of 2024. This decision offers temporary relief to crypto investors and platforms, many of whom were rushing to meet the original deadline.

BlackRock Backs New Stablecoin

During the podcast, Edward also highlighted a critical update for the crypto market involving trillion-dollar asset manager BlackRock. He noted that BlackRock’s tokenized money market fund, called BUIDL, has been approved to back Frax Finance’s USD stablecoin (FRX USD). The approval process was swift, with Securitize playing a key role in moving the proposal forward.

Frax Finance announced that FRX USD combines blockchain transparency and programmability with the reliability of BlackRock’s prime treasury assets. The stablecoin will be backed by cash, U.S. Treasury bills and repurchase agreements managed in BlackRock’s BUIDL.

BlackRock’s growing involvement in the digital asset ecosystem further confirms the increasing adoption of tokenized finance by major financial institutions. Larry Fink, BlackRock’s CEO , has previously emphasized tokenization’s potential to modernize finance.

Market Developments and Trends

Edward also talked about the crypto market, which he believes shows signs of recovery in early 2025. Bitcoin has seen modest upward movement, and altcoins like XRP, Solana, and Cardano have recorded significant gains over the past few days. 

However, he warned that the market is still in a consolidation phase, with potential downside risks before a sustained rally occurs.

Meanwhile, stablecoin activity was also discussed. Tether’s USDT recently experienced its largest market cap drop since the FTX collapse , partly due to Europe’s Markets in Crypto-Assets (MiCA) regulations. 

Despite this decline, Tether is still the top stablecoin issuer. But analysts foresee increased competition from alternatives like USDC and FRX USD in the next few years.