Steven Walgenbach

As the U.S. accelerates its push to regulate the digital asset market, a critical "definition gap" in the tax code is creating reporting headaches for the private sector. 
Despite major legislative efforts like the CLARITY Act and GENIUS Act, stablecoins remain in a state of tax limbo, lacking a legal definition that reflects their role as a medium of exchange. 
Speaking in an interview with Ecoinimist, Jamison Sites, a principal at KPMG, warned that until the tax code is modernized, the friction between digital reality and legacy regulation will continue to burden businesses and stifle adoption.
Stablecoin Payments Create Reporting Headaches
The lack of a stablecoin-specific definition creates complications in everyday transactions, particularly for businesses accepting digital dollars as payment, Sites said.
From a tax perspective, stablecoins are not automatically treated as cash. This means users may need to track cost basis and recognize gains or losses even on small transactions. 
Sites described the current situation as an “information reporting, backup withholding, kind of uncertainty nightmare,” especially for companies handling large volumes of micropayments.
Under existing rules, merchants receiving digital assets may also face reporting obligations tied to anti-money-laundering and tax disclosure thresholds. These requirements were originally designed for physical cash transactions but were later extended to digital assets, creating challenges in decentralized environments.
Record-Keeping Still Critical
Until lawmakers or regulators introduce clearer definitions, Sites said taxpayers must rely on careful documentation. He stressed the importance of tracking exact values at the time of receipt, even for assets intended to remain close to one dollar.
“You received a dollar of stablecoin but… it may have been trading at 0.999 cents. And that’s your basis, not a dollar,” he said.
That requirement could become particularly burdensome for businesses processing millions of stablecoin payments daily, since each transaction may require its own tax calculation.
Banks, Stablecoins, and the Deposit Question
Beyond tax definitions, the interview also touched on broader policy debates around stablecoins and the banking system.
Sites highlighted that unclear regulatory guidance will likely inhibit the large-scale adoption of fully reserved stablecoins. 
Because banks rely on deposits to support lending, a major shift could reduce credit availability across the economy.
“If that were to happen, banks would have to pull back a lot of loans… so you do risk market contraction,” he said.
At the same time, he noted that many banks seem less interested in issuing stablecoins themselves and are instead exploring tokenized deposits, which could preserve traditional banking structures while adopting blockchain-based payment rails.
Tax Rules Likely to Follow Market Structure
While major crypto bills are advancing, Sites suggested that tax legislation will likely arrive later as a “necessary follow-up” to address unintended consequences.
Until then, the industry remains in a transitional phase: stablecoins are gaining clearer regulatory status, but their tax treatment still depends on rules written for a pre-crypto financial system.
This article was originally posted on Ecoinimist.com.

Avalanche’s $AVAX token continues to trade under pressure on the daily chart, with price action reflecting a market that has yet to establish a convincing recovery. Recent sessions have shown a gradual drift lower, with candles slipping beneath important short-term averages while momentum indicators point to weakening bullish conviction.
From a moving average perspective, the short-term trend remains soft. AVAX has been hovering around its fast EMA, but it continues to trade below the more influential 20-day EMA. This positioning typically reflects a market where sellers maintain control, as price has not yet reclaimed the broader trend indicator. The flattening shape of the faster EMA also suggests that bullish momentum is fading rather than accelerating.
Momentum signals offer a cautious outlook. The MACD histogram has moved into positive territory, hinting that bearish pressure is easing, but the indicator remains below the zero line. This usually reflects a transition phase rather than a confirmed reversal. Meanwhile, the RSI sits in the lower neutral zone, showing that buying interest is still limited and the market has room to drift lower before a stronger relief bounce becomes likely.

The nearest resistance sits around the $9.59 region, which aligns with recent price congestion and overhead supply. This zone is likely to act as the first major test for any bullish attempt. A clean break and close above it could open the path toward higher resistance near $12.42 and $12.69, but such a move would likely require a clear shift in sentiment and stronger momentum.
On the downside, the $8.63 level stands as the nearest support, with the $8.32 area acting as the next defensive zone for buyers. A breakdown below these supports would reinforce the bearish structure and potentially accelerate selling pressure.
Order book data adds another layer of caution. Several notable sell walls sit just above the current trading range, particularly between $8.93 and $8.95. These clusters suggest that any short-term upside could face immediate resistance. If cleared, the price may see a modest push higher, but the limited upside implied by these walls indicates that the broader trend still needs stronger buying pressure to shift direction.
For bullish traders, the setup favors waiting for confirmation. A daily close above the $9.59 resistance could signal strengthening momentum and open the door for a move toward the higher resistance band. For bearish traders, the structure still leans toward downside continuation while price remains below the 20-day EMA, with rejection near resistance or a break below $8.63 potentially offering short opportunities.
Overall, the daily outlook for AVAX remains cautiously bearish, with early signs that selling pressure is slowing. However, a meaningful reversal will likely require sustained closes above key resistance levels.
#Avalanche #AVAX #CryptoAnalysis #TechnicalAnalysis

XRP is hovering in a sensitive region on the daily chart, with price action showing signs of hesitation after a recent pullback. The asset has struggled to maintain momentum above short-term resistance, while buyers continue to defend lower levels, creating a tightening range that could soon resolve in a decisive directional move.
On the daily timeframe, $XRP is trading below its short- and medium-term moving averages, suggesting that the broader short-term trend remains under pressure. However, the distance between the price and the faster average is relatively small, indicating that bearish momentum is not accelerating. Instead, the short-term trend appears to be flattening, which often reflects a consolidation phase rather than a strong downtrend.

Momentum indicators paint a similar picture. The relative strength index remains below the midpoint, showing that sellers still hold a slight advantage, but it is not in deeply oversold territory. This suggests that the market is not experiencing aggressive downside pressure. At the same time, the MACD structure shows improving conditions, with bearish momentum gradually weakening. This kind of shift often precedes either a relief bounce or a broader trend transition.
From a structural perspective, the market is now approaching a critical resistance zone near $1.4726. A sustained move above this level could indicate that buyers are regaining control, potentially opening the path toward the next resistance around $1.5094. If bullish momentum strengthens further, the higher resistance near $1.9335 becomes a longer-term target.
On the downside, the first major support sits near $1.3635. This zone represents the nearest line of defense for buyers and could attract demand if the price softens further. A breakdown below this level would likely shift sentiment more clearly in favor of sellers, exposing the next support near $1.2146.
Order book data shows heavy liquidity on both sides of the current price, reinforcing the idea that XRP is in a compression phase. Large bid walls around $1.4100, $1.4000, and $1.3500 suggest buyers are ready to defend those zones. Meanwhile, significant sell walls near $1.4800, $1.4900, and $1.5100 indicate strong overhead supply. If buyers absorb these sell orders and push above the upper liquidity band, it could trigger a stronger upside move. Conversely, losing the lower bid walls would likely open the door to deeper downside.
Overall, the technical structure suggests a neutral-to-bearish bias in the short term, but with clear signs that selling pressure is easing. The next major move will likely depend on whether buyers can reclaim nearby resistance or if key support levels begin to fail.
#XRP #CryptoMarkets #TechnicalAnalysis #Altcoins

Arbitrum’s ARB token is approaching a key support zone on the daily chart after a series of lower closes, signaling that bearish pressure still dominates the broader structure. Recent price action shows that each recovery attempt has been met with renewed selling, suggesting that the market remains in a corrective phase rather than the start of a sustained uptrend.
The trend continues to lean negative, with the price trading below both short-term and medium-term exponential moving averages. This alignment reflects a market where momentum favors the downside, as rallies struggle to hold and are quickly absorbed by sellers. Until the price can reclaim these dynamic resistance levels, the broader structure is likely to remain under pressure.

Momentum indicators, however, are beginning to show subtle signs of stabilization. The MACD histogram has started to print mild positive bars, hinting that bearish momentum may be slowing. While this does not confirm a reversal, it often signals a transition phase where the market may consolidate or attempt a short-term rebound.
At the same time, the Relative Strength Index remains in oversold territory, suggesting that selling pressure has been intense and may be nearing exhaustion. Oversold conditions often precede relief rallies, particularly when they coincide with major support levels. Still, such signals must be treated cautiously, as assets can remain oversold for extended periods during strong downtrends.
The immediate support around $0.1077 now represents a crucial level for bulls to defend. Holding this zone could provide the foundation for a short-term bounce. On the upside, the first meaningful resistance sits near $0.1205, which must be reclaimed to signal any shift in short-term sentiment. A sustained move above this barrier could open the path toward higher resistance zones around $0.1971 and $0.2206, though each level is likely to attract selling interest.
Order book data shows significant bid walls well below the current price, particularly around the $0.0816, $0.0417, and $0.0403 regions. These areas could act as deeper demand zones if the downtrend accelerates, but their distance from current levels highlights the potential for sharp drawdowns if support fails. On the upside, notable ask walls around $0.1700, $0.2200, and $0.2300 indicate that any recovery will likely face heavy supply.
For traders, the structure presents two clear scenarios. A bullish setup would depend on the price holding above the $0.1077 support and reclaiming the $0.1205 resistance, which could indicate that sellers are losing control. Conversely, a break below support would reinforce the bearish trend and may present short opportunities, particularly on retests of the broken level.
Overall, the technical outlook remains cautiously bearish, though oversold conditions suggest the possibility of a short-term bounce if buyers step in at key levels.
#Arbitrum #CryptoMarkets #TechnicalAnalysis #Altcoins