Clarity Act Faces Hurdles Without Crypto Tax Reform

The Clarity Act, seen as a pivotal shift in U.S. crypto policy, aims to establish clear regulatory guidelines, moving away from the previous 'regulation-by-enforcement' approach. However, according to CoinDesk, the Act's potential impact is hindered by the current U.S. crypto tax framework, which remains complex and burdensome. Form 1099-DA, required for crypto brokers, complicates tax reporting by failing to provide a reliable cost basis and excluding non-custodial activities. This creates significant compliance challenges for investors, potentially stalling broader adoption despite regulatory clarity.