Form 1099-DA

The operational danger in the United States’ 2026 crypto reporting rollout is a missing link between a sale and its acquisition history. A brokerage can know exactly how much cryptocurrency it sold for a customer while lacking the records needed to establish that customer’s taxable profit. For investors moving years-old holdings out of self-custody, preparing that history before liquidation is now a central tax-control task. The phrase zero-basis trap describes a reporting and substantiation failure, not a rule that confiscates the basis of deposited assets. Transferring holdings between wallets or accounts owned by the same taxpayer generally does not create income; digital assets spent on transfer services require separate consideration. The transfer itself does not establish a new purchase price. IRS digital-asset transaction FAQs, question 81. ...

Wall Street’s internal trading channel could reopen On October 9, 2026, the Securities and Exchange Commission under Chairman Paul S. Atkins proposed amendments to Rule 17a-7 under the Investment Company Act of 1940. Release No. IC-36358 would restore cross-trading eligibility for much of the fixed-income market, reversing a restriction that followed the 2020 fund valuation rule. This is a proposal, not an operative exemption. The SEC’s announcement makes implementation contingent on further rulemaking. ...

America’s crypto market can receive a friendlier regulatory interpretation without receiving a durable market structure. That distinction explains why Representative French Hill, the Arkansas Republican who chairs the House Financial Services Committee, is still pressing for the CLARITY Act despite an active SEC and CFTC. According to reporting on his television remarks, Hill argued that the agencies’ efforts under existing authority cannot replace a permanent legislative foundation. His argument concerns both the reach of regulation and its staying power. Bitcoin.com’s report on Hill’s legislative push ...

Moving crypto to your own wallet could have meant giving a financial institution more than your identity: the abandoned federal proposal also sought counterparties’ names and physical addresses. That prospect hung over US self-custody for nearly six years. Its withdrawal now closes that proceeding. (Federal Register) FinCEN also withdrew a separate proposal targeting crypto mixing. Neither proposal ever became an effective final rule, so the immediate benefit is the removal of pending requirements rather than a change to yesterday’s transfer procedure. (Bitcoin.com) ...

The money arrived before the fee war. Grayscale’s Zcash ETF gathered more than $1 billion during its first 30 trading days, according to the firm’s trading and capital markets executive Krista Lynch (The Block). A privacy coin had found a substantial audience inside the American brokerage account. Then the flow reversed. ZCSH recorded approximately $59 million in net withdrawals across October’s first four trading sessions (24/7 Wall St.). Into that pause stepped Winklevoss Asset Services, filing its proposed rival on October 6, 2026, with an annual sponsor fee of 0.25% (SEC filing). ...

A year after Bitcoin’s October 6, 2025 peak of $126,080, it was trading near $85,000, roughly 32% lower; US spot Bitcoin ETFs lost $89.9 million on October 5. Cointelegraph Washington, meanwhile, is reconsidering who gets through a different door: private markets. On September 30, the SEC asked whether ordinary Americans should gain another entry route, potentially through an exam costing about $100. Behind that door sit private token sales and crypto funds. Who qualifies today, what would the new test require, and which crypto opportunities would it actually unlock? ...

$87,152 Intraday. $84,501 at the Close. Just 29,000 jobs helped finish a four-day collapse in October hike odds from 70% to roughly 13–14%. Bitcoin reached $87,152 on October 2, then closed at $84,501. The policy obstacle shrank. The rally vanished. Why? September’s ETF buying had nearly stopped, leverage had built before payrolls, and long-term Treasury yields remained punishingly high. A softer Fed outlook could remove a threat without supplying the next buyer. ...

Six Strategies, Two Deadlines, One Tax Distinction The IRS has put six fund strategies under scrutiny, and US crypto investors have two dates to track: October 28 and December 31. The September 28 action targets tax engineering. It does not impose a blanket new tax on crypto ETFs. Treasury and the IRS simultaneously issued Notice 2026-62 and Revenue Ruling 2026-20. The notice describes emerging investment-fund structures whose claimed benefits may conflict with federal tax law’s purpose. The ruling rejects one specific ETF conversion under existing law. ...

Your Bitcoin exposure can look solid on a screen while leaving one uncomfortable question unanswered: who actually holds the assets? With BTC near $84,700, the SEC has put that question at the center of a proposal that could reshape how American advisers and funds handle crypto. The SEC Wants a Clearer Route Into Crypto Custody On Thursday, October 1, 2026, the SEC proposed changes to custody rules under the Investment Advisers Act of 1940 and the Investment Company Act of 1940. The objective is a compliant pathway for investment advisers and regulated funds holding crypto assets. ...

The SEC adopted its new quorum rule on September 30, 2026, just before Hester Peirce’s October 2 departure. The amendment explicitly permits one eligible commissioner to constitute the Commission’s quorum when disqualifications leave only that person. It takes effect upon Federal Register publication; adoption alone does not establish that publication has occurred. SEC final rule. After Peirce leaves, Paul Atkins and Mark Uyeda will occupy the SEC’s two remaining filled seats. Their agreement can keep crypto rulemaking moving, while disagreement can block action. The immediate test is the pending Regulation Crypto Assets proposal, whose comment period ends October 20. Commission staffing; SEC proposal. ...