Here’s what happened in crypto today

Today in crypto, the UK will defer capital gains tax on certain cryptocurrency lending and liquidity pool transactions from 2027 under new “no gain, no loss” rules. Elsewhere, the European Central Bank selected 36 payment providers to help test the digital euro ahead of its planned rollout and the CLARITY Act secured a second endorsement from a major US law enforcement organization as lawmakers race to advance the crypto market structure bill before the Senate’s August recess.

UK to defer capital gains tax on crypto lending and liquidity pools from 2027

The United Kingdom will defer capital gains tax on certain cryptocurrency lending and liquidity pool transactions from April 6, 2027, under new rules that treat qualifying disposals on a “no gain, no loss” basis until the assets are ultimately sold.

HM Revenue and Customs (HMRC) announced that qualifying crypto lending arrangements and liquidity pool transactions will no longer trigger immediate capital gains tax liabilities. Instead, gains or losses will generally be recognized only when an “economic disposal” of the digital assets occurs, aligning tax treatment with the underlying economics of these activities.

The revised framework replaces HMRC’s 2022 guidance following industry consultation and is expected to affect roughly 700,000 individuals and trustees. The tax authority said the change is intended to simplify compliance and improve fairness by deferring tax until investors realize an actual economic gain or loss.

Aave founder Stani Kulechov welcomed the move, arguing it reduces administrative burdens for taxpayers.

“This is the right direction, mainly driven by the industry feedback demonstrating that any other approach would cause significant admin burden for the tax payer,” Kulechov said in a Monday X post.

ECB picks 36 payment providers to test digital euro ahead of 2027 pilot

The European Central Bank is moving the digital euro from planning into testing, with dozens of payment companies joining the next stage of the project.

The ECB selected 36 payment service providers (PSPs) to participate in a digital euro pilot, according to an official announcement published Tuesday.

The list of selected PSPs includes fintechs Stripe and Revolut alongside traditional banks including Deutsche Bank, UniCredit and BPCE. Revolut has recently adjusted some cryptocurrency services for EU users by phasing out support for Tether USDt.

The pilot comes as governments take different approaches to digital currencies. While Europe is expanding testing of its proposed central bank digital currency (CBDC), the US has moved to block the Federal Reserve from issuing a CBDC.

Source: ECB

CLARITY Act gains second law enforcement endorsement before Senate push

The Digital Asset Market Clarity Act has secured its second public endorsement from a major US law enforcement organization, coming just weeks before what many see as a make-or-break legislative deadline before the Senate’s August recess.

In a July 10 statement, the Federal Law Enforcement Officers Association (FLEOA) said it submitted a letter to the US Senate Banking Committee endorsing the CLARITY Act, while calling for changes to strengthen accountability in decentralized finance (DeFi) and preserve investigators’ existing powers. 

“[FLEOA] expressing support for CLARITY and confirming what many of us know — this bill is strong on consumer protection and law enforcement,” said Ji Kim, CEO of the Crypto Council, in a statement Monday. 

The endorsement came nine days after the bill was backed by the National Organization of Black Law Enforcement Executives (NOBLE), with both letters helping counter arguments that the CLARITY Act would weaken the government’s ability to police crypto crime.