How CPAs Should Speak To Clients As Crypto Adoption Accelerates

CPAs have been discussing crypto for years, but given the rapidly (and positively) changing regulatory and policy environment it seems a good time to revisit what might sound like a straight-forward question; how should CPAs approach clients about cryptoassets? While in the past CPAs could have reasonably advised clients to minimize exposure to crypto since the regulatory environment was so uncertain, bankruptcies such as FTX dominated the headlines, and price volatility seemed ingrained into the asset class. Over the last 12-18 months, however, those narratives have changed significantly, with several developments making the crypto conversation between advisors and clients much more nuanced.

Positive momentum on the legislative front at the federal and numerous state levels, the proliferation of spot crypto ETFs, the relaxation of previous strict language around including crypto into 401 (k) plans, the comprehensive repayment plans announced by the FTX estate, and the successful IPO of major stablecoin issuer Circle have all contributed to a more optimistic for crypto as 2025 continues to roll forward. Despite these developments, including the actions taken by the OCC and FDIC to allow more institutions to engage with crypto operations, the tax and accounting outlook for crypto has yet to significantly shift.