Strategic Capital Preservation in the OBBBA Era: Tax Efficiency for Crypto Investors
The One Big Beautiful Bill Act (OBBBA) has redefined capital gains taxation since its enactment in July 2025, presenting both challenges and opportunities for cryptocurrency investors. Short-term holdings face ordinary income rates up to 37%, while long-term gains benefit from preferential 0-20% brackets—a critical distinction for BTC, ETH, and other digital assets.
Sections 121, 1031, and 1202 of the tax code now interact with crypto portfolios in unexpected ways. The revitalized Opportunity Zone program offers particular promise for projects like SOL, DOT, and FIL that align with geographic development incentives. Asset location strategies have become as important as holding periods in this new fiscal landscape.