New Crypto Law Won't Work Without Fixing Tax Rules

A new law called the Clarity Act is supposed to make cryptocurrency rules clearer in the United States. But there's a big problem: even with better rules, the tax system for crypto is still too complicated.

What's the Problem?

When you buy or sell cryptocurrency (digital money like Bitcoin), you need to report it on your taxes. The government created a form called Form 1099-DA that crypto companies must send to their customers. This form is supposed to show: • How much crypto you bought and sold • When you bought it • How much profit or loss you made

But the form often gets things wrong. It might show you sold crypto for $1,000 but not show that you bought it for $800. Without both numbers, you can't calculate your profit correctly.

Why This Matters

Imagine keeping track of hundreds of crypto transactions across different apps and websites. Each platform might report different numbers, and some transactions might be missing entirely. Regular investors (people like you and me) have to spend hours fixing these mistakes or risk getting in trouble with the IRS (the tax agency).

The Bigger Picture

The Clarity Act is meant to replace the old system where the government would punish crypto companies without clear rules. While having clear rules is good, it won't help much if people are still scared away by confusing tax forms.

For cryptocurrency to become mainstream in America, both the rules AND the tax system need to be simple enough for regular people to understand and follow.

This is an AI-generated summary. Read the original article at: https://www.coindesk.com/opinion/2026/05/26/the-clarity-act-won-t-lead-to-adoption-without-crypto-tax-reform