The IRS has introduced a temporary measure to address the tax challenges for cryptocurrency holders through centralized financial intermediaries (CeFi) in 2025. According to Shehan Chandrasekera of CoinTracker, the measure alleviates the pain of Section 6045 custodial intermediary regulation, which goes into effect on January 1, 2025.

- The regulation requires CeFi intermediaries to report cryptocurrency transactions and apply a specific accounting method. Failure to select a method will default to FIFO, which could increase taxes in a bull market.

- The IRS has issued Notice 2025-7, allowing taxpayers to use their own records or tax software to identify assets sold, providing more flexibility.

- The measure is automatic, requiring no immediate action from taxpayers, but starting on January 1, 2026, the accounting method must be selected with the intermediary to avoid the FIFO default. 📊

- Taxpayers should maintain detailed records or use reputable tax software to ensure accurate reporting.