KPMG's Crypto Strategy Reveals What's Coming Next with Tony Tuths

KPMG’s Tony Tutz explains how firms manage crypto tax, custody, tokenization and DeFi uncertainty while building proprietary tools and urging clearer regulation.

Key Takeaways

Regulatory clarity is imminent but incomplete: agencies issue guidance while Congress considers bills (Lummis, Miller‑Horsford) that would extend safe‑harbors and DeFi tax rules.
Crypto tax reporting and relief needs fixing: 1099‑DA rollout created errors, stablecoin reporting and wash‑sale gaps remain, and bills propose de minimis and gas‑fee relief.
Staking and mining tax choices matter: taxpayers can elect immediate income treatment to preserve capital‑gains treatment later; default rules tax on sale.
Operational scale requires proprietary tooling: KPMG and clients build in‑house explorers (Chain Fusion), reconciliation systems and hires to handle unsupported chains and novel tokens.
Tokenization and DeFi complicate accounting: tokenized shares remain shares, but DeFi actions blur disposal versus lending and create derecognition and reporting ambiguity.
Firms adopt AI cautiously and strategically: proprietary AI speeds workflows, synthesizes market data, and enforces risk parameters 24/7 while protecting sensitive client data.

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