🧠 TODAY’S TOP MOVE
Coinbase just dropped a bomb: starting in 2026, crypto investors face 24% IRS backup withholding if they don’t confirm their tax status.
Translation: the IRS is watching — and taxable crypto just became a compliance nightmare.
👉 Screenshot proof: Coinbase’s investor notice (2025)
🗞️ THE SIGNAL
Here’s what Coinbase is warning every crypto holder in taxable accounts:
Confirm or else: fail to confirm your tax status, and 24% of every sale gets withheld.
Complex reporting: every trade tracked, every gain/loss logged.
Annual IRS headaches: endless forms, audits, and mistakes waiting to happen.
Most investors still don’t realize the simple fix:
💡 Crypto inside a 401(k) = tax-sheltered growth.
No capital gains.
No annual reporting.
No withholding.
Just compounding until retirement.
📊 WHAT THIS MEANS FOR YOU
For 401(k) holders:
✅ The same Executive Order that opened doors to private equity and real estate also cracked the door for crypto.
⚠️ Don’t wait for the IRS to get tougher — the best defense is moving crypto into retirement accounts before 2026.
For advisors/fiduciaries:
✅ Clients will start asking: “Can I hold Bitcoin in my 401(k)?”
⚠️ Platforms offering crypto custody must be vetted now — transparency, security, and fees matter.
⚖️ FIDUCIARY FOCUS
Tax traps are now part of your fiduciary duty to explain.
Education is key: taxable vs tax-sheltered crypto isn’t a nuance, it’s a survival tactic.
Custody & compliance: who solves the reporting challenge first will dominate this new space.
Translation: this isn’t about hype — it’s about shielding participants from IRS overreach.
✅ THE BOTTOM LINE
Coinbase just made it clear: the IRS is tightening the screws. Taxable crypto is about to become painful.
The opportunity? Crypto inside 401(k)s — where growth compounds tax-deferred, free from withholding and IRS headaches.
⚖️ THE FINAL WORD
Wall Street and Washington will always chase your gains. The smartest move isn’t fighting the IRS — it’s stepping into the shelter before the storm hits.
~ Brian
⚡ WHAT’S NEXT
Over the coming weeks, we’ll reveal the platforms already building crypto 401(k) products — and the compliance hurdles fiduciaries need to watch before recommending them.
📈 Forward this to anyone holding crypto in a taxable account.
Their next tax season is about to get ugly.