Stablecoin Tax Optimization Strategies for 2025

Global tax authorities are shifting from observation to enforcement, making stablecoins a critical tool for wealth preservation. Investors must navigate this landscape with precision, leveraging regulatory nuances and accounting techniques.

HIFO (Highest-In, First-Out) accounting emerges as a top strategy, allowing selective liquidation of high-cost-basis holdings to minimize capital gains. In the U.S., the wash sale loophole remains a fleeting opportunity—losses can be realized immediately without the 30-day waiting period applied to traditional securities.

Specific Identification (Spec-ID) enables granular cost-basis tracking across wallets, insulating long-term holdings from short-term trades. Yield reporting demands sharp distinction between ordinary income (staking, lending) and capital gains (disposal), as ordinary income faces higher tax rates.

In the EU, MiCA compliance will dictate stablecoin viability. Only asset-referenced tokens meeting stringent requirements will provide legal clarity. De-pegging events, though rare, offer loss-harvesting opportunities when they occur.