Insights

The SEC’s proposed “Regulation Crypto Assets” would establish tailored exemptions, an investment contract safe harbor, and broad state preemption for qualifying crypto asset offerings.

DeFi vaults are facing growing regulatory scrutiny as the SEC examines whether their structures and operators may trigger registration requirements under federal securities, commodities, and financial laws.

Illinois’ new Digital Asset Privilege Tax Act would tax crypto transactions at 0.2% of asset value starting 2027, raising compliance, valuation, sourcing, and rulemaking challenges while leaving room for changes.

The United States Tax Court issued its opinion in Paschall v. Commissioner, T.C. Memo. 2026-46, holding that cryptocurrency staking rewards are includible in gross income in the year the taxpayer receives them — not deferred until the rewards are later sold or exchanged.