Key facts
- UK to defer capital gains tax on certain crypto lending and liquidity pool transactions from 2027.
- New UK rules will treat qualifying disposals on a 'no gain, no loss' basis until assets are sold.
- The European Central Bank selected 36 payment providers for its digital euro pilot program.
- The CLARITY Act received endorsement from the Federal Law Enforcement Officers Association.
- The CLARITY Act aims to advance crypto market structure legislation before the Senate's August recess.
In cryptocurrency news, the United Kingdom announced it will defer capital gains tax on certain cryptocurrency lending and liquidity pool transactions starting April 6, 2027. Under the new rules from HM Revenue and Customs (HMRC), these qualifying transactions will be treated on a “no gain, no loss” basis until the assets are ultimately sold, simplifying compliance and deferring tax until an actual economic gain or loss is realized. Aave founder Stani Kulechov praised the move for reducing administrative burdens.
Separately, the European Central Bank (ECB) has advanced its digital euro project by selecting 36 payment service providers (PSPs) to participate in a pilot program. The chosen PSPs include fintech firms like Stripe and Revolut, as well as traditional banks such as Deutsche Bank, UniCredit, and BPCE. This pilot phase comes as Europe progresses with its central bank digital currency testing, contrasting with the US approach.
In the United States, the Digital Asset Market Clarity Act (CLARITY Act) has garnered further support from law enforcement organizations. The Federal Law Enforcement Officers Association (FLEOA) recently endorsed the bill, sending a letter to the US Senate Banking Committee. This endorsement, following a similar one from the National Organization of Black Law Enforcement Executives (NOBLE), aims to counter arguments that the CLARITY Act would hinder efforts to police crypto crime, as lawmakers push for its advancement before the Senate's August recess.