Denmark’s Tax Law Council has stirred the crypto community with a bold recommendation: the taxation of unrealized crypto gains. This unprecedented move could significantly impact investors, taxing them on the rising value of their holdings even if they don’t sell the assets. The proposed rules are part of an effort to reduce the tax asymmetry between crypto gains and losses and would apply starting January 1, 2026.
A First Look At Market-to-Market Taxation
The Danish Tax Law Council aims to implement a market-to-market taxation model for crypto, where crypto holdings will be treated as capital income. This means investors will be taxed annually on the value change of their crypto assets, regardless of whether they sell them. The council’s recent statement stressed that the current tax laws do not adequately capture the volatile nature of cryptocurrencies, leading to unequal treatment of gains and losses.
“Market-to-market taxation will provide clarity and ensure consistent taxation whether assets are liquidated or not,” the council explained. The proposal seeks to address a long-standing concern that tax regulations have struggled to keep pace with the rapid rise of decentralized assets.
Crypto Investors Face Retroactive Impact
Crypto investors have expressed concerns, particularly due to the retroactive nature of the proposed taxation. According to Mads Eberhardt, a senior crypto analyst at Steno Research, the new rules will apply to crypto assets dating as far back as 2009, when Bitcoin’s genesis block was mined. This could pose a challenge for long-term holders who have seen the value of their assets rise significantly over the years.
What’s more, Eberhardt warned that the tax rate for unrealized gains could climb as high as 42%, a steep cost for investors who may not have the liquidity to cover the tax bill. “These rules could fundamentally change how crypto investments are viewed in Denmark,” he stated, noting that the legislation could deter new investors and push some existing ones to relocate their holdings.
The council has proposed that crypto service providers, including exchanges, be required to disclose their clients’ transactions to ensure accurate reporting. This mandatory reporting will add another layer of transparency but also creates challenges due to the decentralized nature of many crypto assets.
The proposed bill, expected in early 2025, will outline further details. However, many industry experts warn that implementing effective crypto taxation remains complex due to the lack of oversight from centralized entities like banks or government authorities.
The Road Ahead
While the council’s recommendation is just the beginning, the Danish government appears determined to bring clarity to the often murky world of crypto taxation. If approved, Denmark could become a pioneer in taxing unrealized crypto gains, setting a precedent for other countries to follow. However, this also raises questions about how fair such a tax is for investors who may not have the means to pay for gains they haven’t realized.
As the global crypto market continues to grow, the debate over how to fairly tax digital assets is far from over. Investors and industry players will be watching closely as Denmark prepares to unveil its final bill in the coming year.
Denmark’s proposed crypto tax on unrealized gains could send shockwaves through the crypto industry, affecting both current and future investors. With a possible retroactive reach and high tax rates, many are left wondering how this will reshape the landscape for digital assets in Denmark and beyond.
As developers await further testing results from the Hoodi testnet, the highly anticipated Ethereum Pectra mainnet upgrade, initially slated for April 2025, has been delayed.
This decision came during Ethereum’s All Core Developers Consensus Call (ACDC) #153 on March 20. It reflects the development team’s cautious approach to ensuring a smooth and stable upgrade process.
Hoodi Testnet to Determine Pectra Timeline
During the call, Ethereum’s core team reviewed the progress of Pectra.
Instead of confirming a mainnet date, they opted to monitor the upgrade’s performance on Hoodi, a newly launched testnet designed to assess Pectra’s stability. This is unsurprising, as Ethereum Protocol Support Lead Tim Beiko recently hinted as much. He noted the scheduling of Pectra Upgrade at least 30 days after Hoodi forks successfully.
“…Pectra will be scheduled 30+ days after Hoodi forks successfully, pending infra and client testing. Fusaka planning will run in parallel, with a deadline of March 24 to propose EIPs, and a tentative date of April 10 for a scope freeze,” Beiko explained.
Therefore, the delay is not entirely surprising, reflecting developers’ cautious approach to ensuring a smooth transition.
Ethereum Developers’ Consensus Layer Meeting 153 for Pectra Upgrade
The main reason for postponing the upgrade is the need for thorough testing. Developers use Hoodi to simulate real-world conditions and identify potential issues before activating Pectra on the mainnet.
The upgrade will go live on Hoodi on March 26, with developers observing its performance before deciding on the mainnet release.
Another factor influencing the delay is History Expiry, a planned cleanup process set to go live on May 1. This change, linked to Ethereum Improvement Proposal 6110 (EIP 6110), affects the handling of validator deposit history on Ethereum.
Since Pectra plays a key role in this process, the delay also compels the postponing of History Expiry. Developers are now reconsidering the timeline for implementing this change.
For now, the priority is to ensure a successful Pectra test on Hoodi, which is better than the Sepolia testnet. If testing goes smoothly, developers could move forward to set a mainnet launch date. However, they could extend the timeline further if necessary.
“Sepolia’s Pectra upgrade hit a snag because a node didn’t upgrade in time—sounds trivial, but it’s a reminder: Ethereum’s decentralization is only as strong as its weakest operator. If one forgotten node can delay an upgrade, imagine what happens when real money is on the line,” one user quipped.
At the same time, discussions about Ethereum’s next major upgrade, Fusaka, are underway. Developers are considering additional improvements for inclusion in future updates. This would ensure that Ethereum continues to grow and maintain its leadership in the blockchain space.
Although the Pectra delay is temporary, developers emphasize that thorough testing is essential to avoid unexpected issues.
The Ethereum community will have to wait a little longer, but the upgrade remains a top priority. A final decision on the mainnet launch date is due in the coming weeks.
The Solana-based memecoin MELANIA, named after US First Lady Melania Trump, is under growing scrutiny after a series of large token sales linked to the project’s team.
On May 3, blockchain researcher EmberCN revealed that project-linked wallets offloaded nearly 10 million MELANIA tokens in just eight days.
MELANIA-Linked Wallets Offload $23 Million in Tokens Since March
These sales amounted to nearly $4.6 million, raising strong concerns over the project’s long-term viability and team motives.
According to EmberCN, the sales followed a Dollar-Cost Averaging (DCA) strategy alongside unilateral liquidity provision. These techniques allowed the project to reduce price impact while quietly exiting large positions.
Notably, this is not the first time the project has utilized this approach. In April, the same wallets sold 3 million tokens in exchange for about 9,009 SOL—roughly $1.2 million at the time—employing a similar liquidation approach.
Meanwhile, these selling activities have been ongoing for a long time. Since mid-March, the wallets have quietly liquidated around 41.67 million MELANIA tokens for around 170,000 SOL, worth approximately $23 million.
EmberCN pointed out that most of these proceeds appear to have been converted to USDC and withdrawn. This suggests an ongoing effort by the project’s team to exit their significant positions in the token.
The repeated and large-scale token sales by wallets tied to the project have fueled suspicions among holders.
Many now question whether the meme coin was ever designed for long-term utility or merely crafted to capitalize on the name recognition of the US first lady.
MELANIA launched in January 2025 amid media buzz, spurred by its branding and the timing of President Donald Trump’s inauguration. However, that early momentum has rapidly faded amid a broader market lull that significantly impacted meme coins.
According to BeInCrypto data, the token trades at roughly $0.38, down more than 6% over the past day and 31% in the last seven days.
In an exclusive interview with BeInCrypto, former US CFTC Commissioner Timothy Massad explains how President Trump’s crypto ventures and political power have significantly overlapped in his first two months at the White House.
Shortly before assuming office for the second time, US President Donald Trump dove head-first into a flurry of crypto experiments. From endorsing World Liberty Financial (WLFI) to launching his meme coin, Trump is raising serious concerns over conflicts of interest. Tim Massad, the 12th CFTC Chairman, who served under Barack Obama, shares his thoughts.
A Historic President For Many Reasons
Before assuming his first term in office in 2016, President Trump broke with modern precedent by departing from established conflict-of-interest norms. A real estate mogul with a trademark for a last name, Trump would be entering the Oval Office as the leader of a multi-billion dollar empire.
While former presidents like Jimmy Carter and George W. Bush took measures to separate themselves from their businesses by placing their assets in a blind trust, the sitting President took a different approach.
Instead, Trump handed day-to-day management decisions over to his sons but did not divest in his ownership stake.
Though he received much backlash during his first term over conflict of interest concerns, Trump refused to relinquish ownership of the Trump Organization before assuming office for the second time.
Given Trump’s favorable stance toward digital asset policy development, players inside and outside the industry have begun to wonder whether his decisions are based on the sector’s best interests or are designed to benefit his own ventures.
How Deep is Trump’s Involvement in World Liberty Financial?
Though Trump does not have a direct role in WLFI, he appears on the whitepaper’s list of supporting teams as “Chief Crypto Advocate.” His three sons, Eric, Donald Jr., and Barron, are also on the list.
Reports further unveiled that the Trump family holds a 75% stake in the platform’s net revenue and a 60% stake in the holding company. At the same time, Trump and his associates own 22.5 billion of the company’s tokens.
For former CFTC Commissioner Tim Massad, despite Trump’s informal role in WLF’s governance, his stake in the platform’s performance raises serious conflicts of interest.
“I think it’s unprecedented and plainly wrong for a President of the United States to engage in commercial ventures or have his family and associates engage in commercial ventures that can be directly influenced by the policies he adopts as President or the statements he makes about those policies,” Massad told BeInCrypto.
Meanwhile, the tokens themselves are non-transferrable, limiting financial flexibility. Though the project aims to provide token holders access to a range of DeFi-related products and services, it has yet to launch them. In the meantime, token holders will have to wait until the time comes to use their tokens.
“I have yet to see any real business case or utility that’s of value to people who invest. So I think it all just has a character of taking advantage of people,” Massad added.
The industry has also grown weary over how WLF and other Trump-endorsed projects could be used to gain the President’s favor.
Industry Leaders Voice Concerns Over World Liberty Financial’s Legitimacy
Shortly before Trump launched World Liberty Financial, many prominent figures in the crypto sector warned that the project could cause Trump further legal troubles. Meanwhile, Alex Miller, CEO of Web3 platform Hiro, described the project as an “obvious pump scheme.”
Meanwhile, Alex Miller, CEO of Web3 platform Hiro, described the project as an “obvious pump scheme.”
Just fucking shoot me
Anyone who thinks this is good for crypto, that it doesn’t make us look like clowns, that it doesn’t set us back YEARS in credibility….
This is such an obvious pump scheme. Maybe he won’t literally rug but he’s just grifting and it’s pathetic pic.twitter.com/8bTGmUfLvG
Other industry leaders, such as Mark Cuban, Max Keiser, and Anthony Scaramucci, also criticized Trump’s decision to proceed with WLF’s token sales. Trump’s involvement in the project heightened fears that crypto’s fragile public image and controversial reputation would be smeared further.
Massad agreed with this last point, adding that crypto policy development is alive and well today more than ever. The ongoing development of stablecoin regulations, open talks of a national crypto strategic reserve, and a Senate-driven digital asset working group are only some of the current institutional initiatives.
“He, the Trump Organization and his family members should not be engaging in commercial ventures that pose such blatant conflicts of interest, given the fact that crypto regulation and things like a potential Bitcoin reserve are important policy issues today. A US president shouldn’t be engaging in these things at all, in my view,” Massad said.
Since the project’s launch six months ago, several examples validating these concerns have emerged. The most notable one has focused on Tron founder Justin Sun.
The move was highly controversial. Despite Trump’s endorsement, WLFI struggled to meet its $30 million fundraising target during its first public sale. The token’s availability was restricted, excluding general trading and limiting purchases to non-US and accredited US investors.
Sun’s investment turned WLFI’s luck around. Soon after that, he also became one of the project’s advisors. Then, on the day of Trump’s inauguration, Sun invested an additional $45 million in the project, bringing the total sum to $75 million.
This investment brought varying degrees of scrutiny. While some questioned his quick transition from investor to advisor, others pointed to Sun’s past as a potential motive for his contributions.
In March 2023, the SEC filed fraud charges and other securities law violations against Sun and his companies. This regulatory baggage has led some industry leaders to question the wisdom of his association with World Liberty Financial.
Meanwhile, Tron’s price soared following Sun’s latest WLF investment. Tron, which had been experiencing lagging prices up until that point, was able to jumpstart its trading activities.
TRON Price Surge Following Sun’s $45 Million Investment in World Liberty Financial. Source: TradingView.
However, these conflicts of interest are not just limited to Sun’s investment.
Zhao could also benefit from an agreement. In 2023, he pleaded guilty to federal charges for failing to implement adequate anti-money-laundering measures at Binance.
Following his plea, Zhao resigned as Binance’s CEO. Motive-driven speculations point toward the possibility of a potential presidential pardon.
For Massad, maneuvers like these are natural when a president directly involves himself in crypto ventures.
“I think there is a huge risk of conflicts of interest and corruption by virtue of the President and people associated with him selling crypto assets—whether that’s through World Liberty Financial or the meme coins. It creates the potential for ongoing conflicts, because people who might want to curry favor with the administration could buy the coins,” Massad told BeInCrypto.
All the while, Trump benefits his crypto ventures every time he makes a pro-crypto announcement.
Is Trump Manipulating the Crypto Market?
A week into March, Trump signed an executive order to establish a Crypto Strategic Reserve and a US Digital Asset Stockpile. In his original announcement, Trump said the reserve would include Bitcoin, Ethereum, and altcoins like XRP, ADA, and SOL.
The crypto market responded immediately, with all five cryptocurrencies posting strong gains. Yet, Trump’s announcement quickly raised concerns over potential market manipulation.
With Bitcoin, Ethereum, and XRP in its treasury, WLF’s holdings grew in value as those assets appreciated. This growth could have boosted investor confidence, leading to higher demand for WLF tokens.
The crypto market’s overall surge and attention to Trump-related projects also generated greater investor interest in WLF, contributing to its price appreciation.
Meanwhile, Trump’s meme coin surged following the President’s reserve announcement. While TRUMP’s price stood at $13.55, with a trading volume of almost $1.2 billion on March 2, those numbers surged to $17.46 and $3.6 billion, respectively, following the news a day later.
On March 4, TRUMP’s price and trading volume plummeted below the numbers they registered only two days earlier.
“I think the meme coins have looked like a classic pump-and-dump scheme or money grab. I don’t think the issue should be, why not let people invest in these things if they want to? Of course they should have the right to invest in whatever they want. The issue is the propriety of the President of the United States selling things that capitalize on his being the President,” said Massad.
Even Ethereum Co-Founder Vitalik Buterin touched on the damaging effects of political meme coins in a social media post published five days after TRUMP’s launch.
“Now is the time to talk about the fact that large-scale political coins cross a further line: they are not just sources of fun, whose harm is at most contained to mistakes made by voluntary participants, they are vehicles for unlimited political bribery, including from foreign nation states,” Buterin said.
There is perhaps an analogy with weed here.
Ten years ago, to many weed represented freedom, and rebellion against sclerotic old order that denied self-sovereignty over our bodies. Then, weed became legalized, and “official”.
On that day, I remember my personal interest in weed…
Given Trump’s active participation in the crypto industry over the past several months, a vital question remains: Why hasn’t Trump been held accountable over these apparent conflicts of interest?
The answer remains short and bitter: He can’t be.
Can Trump Be Held Accountable?
The potential conflicts of interest arising from Donald Trump’s involvement in the cryptocurrency industry have drawn the attention of various political figures, particularly those focused on government ethics and oversight.
US Senator Elizabeth Warren has been the most vocal opponent of Trump’s dealings in the crypto industry.
“I write today to request information about how you, as President Trump’s ‘Crypto Czar,’ have addressed your conflicts of interest, and how you will prevent the President and other private individuals from directly profiting off of the Trump Administration’s efforts to selectively pump the value of certain crypto assets, drop crypto asset-related enforcement actions, and deregulate the crypto asset industry. These actions have the potential to benefit billionaire investors, Trump Administration insiders, and speculators at the expense of middle-class families,” Elizabeth Warren wrote.
However, not much else can be done beyond letters that demand responses and clarifications from the Trump administration.
The Legal Loophole
US Presidents are largely exempted from conflict of interest provisions. This exemption has been based on legal interpretations that argue these laws could impede the President’s ability to fulfill their constitutional duties.
“The problem is, the POTUS is not subject to the conflict-of-interest laws that apply to most other executive branch officeholders. There is the Foreign Emoluments Clause in the Constitution, which prohibits accepting gifts from foreign countries. There’s also a domestic clause that prohibits accepting gifts from the government. But beyond that, he’s not subject to the usual conflict-of-interest standards. So, it’s unfortunate that we don’t have those standards applicable to a president. I think, had any other president done these things, there would be far more outrage,” Massad told BeInCrypto.
Given the legal circumstances, public scrutiny and political pressure are the best ways to hold a president accountable for potential conflicts of interest.
Yet, despite the legal exemptions for sitting presidents, the ethical implications of Trump’s crypto dealings remain undeniable.
As the lines between political power and personal profit continue to blur, the necessity for clear ethical standards, even without legal mandates, becomes increasingly urgent.
Failing to do so might erode public trust in the crypto industry, generating potentially irreversible consequences.
BNB (@cz_binance) 