This report summarizes key global developments in crypto asset taxation and regulation in the second half of March 2026.
On the tax front, South Korea's People Power Party submitted an amendment that would repeal the not-yet-effective income tax regime on gains from the transfer and lending of crypto assets. The U.S. lawmakers also released a discussion draft of the Digital Asset Market Structure Tax Fairness Act, which would establish a dedicated tax framework for transactions involving compliant payment stablecoins.
On the regulatory front, the U.S. SEC and CFTC jointly outlined compliance boundaries for crypto assets by defining five categories of assets and clarifying that common activities do not constitute securities activities. Nasdaq received SEC approval to conduct trading and settlement for tokenized securities. The U.S. CLARITY Act would prohibit interest-like returns on stablecoin balances while preserving non-interest promotional rewards. Stand With Crypto Launches Midterm Campaign, Endorsing Six Pro-Crypto Candidates. The U.S. Department of Labor has proposed opening retirement investment portfolios to crypto asset exposure. Washington State has formally sued prediction market operator Kalshi. In Brazil, Law No. 15,358 expressly brings "digital or virtual assets" within the scope of freezing, seizure, and confiscation measures in organized crime cases. Canada is also considering legislation that would prohibit the use of cryptocurrencies for political donations.
Rep. Song Eon-seok, floor leader of South Korea's People Power Party, submitted a partial amendment to the Income Tax Act that would repeal the income tax regime on gains from the transfer and lending of crypto assets before its scheduled entry into force on January 1, 2027. The ruling Democratic Party responded that no consensus has yet been reached on abolishing the tax, but that it will review the new proposal. Click here to read the original article.
U.S. Rep.s Max Miller and Steven Horsford released a discussion draft of the Digital Asset Market Structure Tax Fairness Act, which would establish specific tax rules for transactions involving compliant payment stablecoins, extend wash sale rules to digital assets, and allow eligible digital asset dealers and traders to elect mark-to-market treatment. The draft is currently intended for industry discussion and has not yet been formally introduced in Congress. Click here to read the original article.
The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission jointly issued guidance on crypto asset regulation, classifying crypto assets into five categories, confirming that only "digital securities" fall under securities regulation. Tokens are deemed securities only if structured as investment contracts tied to issuer-driven profit expectations, with classification subject to change. Core activities such as airdrops, mining, and staking are generally excluded, reducing compliance uncertainty. Click here to read the original article.
The SEC has approved Nasdaq's proposal to allow certain stocks and ETFs that meet DTC pilot requirements to be traded and settled in tokenized form on Nasdaq. Tokenized securities must be interchangeable with their traditional counterparts, carry the same CUSIP and ticker symbol, confer the same rights on holders, and trade in parallel on the same order book. Click here to read the original article.
Media reports revealed the latest Senate draft of the CLARITY Act relating to stablecoin yield. Under the reported text, digital asset service providers would be prohibited from directly or indirectly paying returns on users' stablecoin balances or offering compensation that is economically or functionally equivalent to bank deposit interest. However, non-interest rewards linked to payments, transactions, or loyalty programs may still be allowed. Click here to read the original article.
Brazil's president signed Law No. 15,358, which expressly brings "digital or virtual assets" within the scope of freezing, seizure, and confiscation in organized crime cases. Assets declared confiscated may, with judicial authorization, be temporarily used by public security agencies for police re-equipment, training, and special operations. The law also expands powers to freeze and seize crypto assets. Click here to read the original article.
Stand With Crypto, a crypto advocacy organization launched by Coinbase, has rolled out a midterm election initiative in the United States. It initially endorsed six bipartisan pro-crypto congressional candidates, opposed two anti-crypto lawmakers, and launched a voter platform aimed at mobilizing electoral support. Polling cited by the group shows that 64% of crypto holders are more likely to support pro-crypto candidates. Click here to read the original article.
The Canadian government submitted Bill C-25, the Strong and Free Elections Act, to the House of Commons. The bill would broadly prohibit the use of cryptocurrencies, money orders, and prepaid cards for donations within the federal political system. It would require prohibited donations to be returned, destroyed, or liquidated and remitted within 30 days after the recipient becomes aware of them. For corporations and other entities, the maximum administrative penalty could reach twice the amount of the violation plus CAD 100,000. Click here to read the original article.
Washington State has formally sued prediction market operator Kalshi, alleging that it has provided illegal online gambling in the state under the label of "event trading" and seeking injunctive and other relief. Nevada had previously obtained injunctions blocking Kalshi and related prediction products offered through Coinbase from launching in the state. Click here to read the original article.
The U.S. Department of Labor has issued a proposed rule that would clarify the standards for fiduciaries of retirement plans such as 401(k)s when including investment options with exposure to alternative assets. The proposal would allow assets such as cryptocurrencies, private equity, and real estate to be included in plan investment menus and would create a process-based safe harbor. If finalized, it could allow some retirement plans to include funds with exposure to private markets or digital asset-related businesses in their investment lineups. Click here to read the original article.
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