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Congress's Budget Referee Confronts Swarm of GOP Critics

Congress's Budget Referee Confronts Swarm of GOP Critics

Wall Street Journala day ago

WASHINGTON—Phill Swagel expected this. Well, most of it.
Swagel, a mild-mannered academic economist, runs the Congressional Budget Office, the fiscal scorekeeping agency getting blasted by Republicans as they try to push their tax-and-spending megabill through Congress by July 4. They say CBO is too pessimistic on economic growth and tilts against the GOP, unfairly fueling charges that the measure is fiscally irresponsible.

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How CPAs Should Speak To Clients As Crypto Adoption Accelerates
How CPAs Should Speak To Clients As Crypto Adoption Accelerates

Forbes

time9 minutes ago

  • Forbes

How CPAs Should Speak To Clients As Crypto Adoption Accelerates

CPAs need to be educated on crypto to better advise clients CPAs have been discussing crypto for years, but given the rapidly (and positively) changing regulatory and policy environment it seems a good time to revisit what might sound like a straight-forward question; how should CPAs approach clients about cryptoassets? While in the past CPAs could have reasonably advised clients to minimize exposure to crypto since the regulatory environment was so uncertain, bankruptcies such as FTX dominated the headlines, and price volatility seemed ingrained into the asset class. Over the last 12-18 months, however, those narratives have changed significantly, with several developments making the crypto conversation between advisors and clients much more nuanced. Positive momentum on the legislative front at the federal and numerous state levels, the proliferation of spot crypto ETFs, the relaxation of previous strict language around including crypto into 401 (k) plans, the comprehensive repayment plans announced by the FTX estate, and the successful IPO of major stablecoin issuer Circle have all contributed to a more optimistic for crypto as 2025 continues to roll forward. Despite these developments, including the actions taken by the OCC and FDIC to allow more institutions to engage with crypto operations, the tax and accounting outlook for crypto has yet to significantly shift. Let's take a look at a few things CPAs need to keep in mind when discussing crypto with clients as positive momentum continues to accelerate. Given the nearly continuous flow of positive headlines around cryptoassets and the increased frequency with which investors of all sizes are allocating funds to said assets CPAs might very well be speaking with clients who fear missing out on these returns. That said, the investing adage that past success does not indicate future performance holds equally as true for crypto as any other asset class. For example, bitcoin has traded as low as $70,000 in 2025 prior to rebounding back about $100,000 beginning in May 2025; volatility remains an embedded part of the crypto ecosystem. For CPA clients seeking to integrate cryptoassets as part of a treasury allocation, accepting cryptoassets for payment purposes, or seeking to advise external clients whether crypto is a good fit for operations the pressure to invest in crypto can be significant. A responsibility of CPAs across the board is to make sure that any and all clients interested in crypto are only investing in these assets if the assets are well understood, and are a good fit for the business model of the firm. Despite the positive changes that have permeated into the cryptoasset sector the tax ramifications of these the fact remains that taxes are an obstacle to wider utilization of crypto for business purposes. Virtually every single transaction, transformation, or exchange that involves cryptoassets will create a tax reporting and potential tax payment obligation, and this has not changed even as the usage and adoption of crypto continues to accelerate. This is especially true for individuals that engage in higher volume trading or business activities, as several changes in particular will impact businesses using crypto. Specifically, changes that are related to IRS code section 6045 and 6050I, including the pivot to a universal wallet tracking methodology, are set to complicate the accounting for crypto transactions and gains. With further changes coming to the marketplace beginning January 2026, and while DeFi broker regulations (with an effective date in 2027) have been sidelined for now, the tax conversation around crypto is far from over. CPAs are already trusted as business and tax advisors, and especially as it is connected to crypto the value that can be added to a client via improved tax information is difficult to overstate. An often repeated issue and statement that can arise with the onboarding of cryptoassets is the perception that internal controls are less important since underlying blockchains are usually perceived as immutable and unhackable. Even if the blockchain itself has proven itself resilient and impervious to hacking attempts the multitude of hacks and data breaches that have occurred in the cryptoasset sector should serve as a reminder that internal controls are always important. Specifically the recent data breach at Coinbase should be illustrative to potential users and investors in crypto; even one of the most highlight regulated and well regarded institutions in the crypto sector suffered a data breach due to social engineering attacks on certain employees. For smaller institutions or entrepreneurs looking to gain exposure to crypto the importance of establishing and improving internal controls around cryptoassets and crypto policies should be an imperative. CPAs are well versed in assisting clients in the establishment and improvement of controls and control frameworks, and the importance of controls around crypto is no different. Crypto continues to make inroads across the economic board, and CPAs need to be well-prepared to discuss these issues with clients now and going forward.

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