The UK tax authority has announced plans to change how cryptocurrency lending and liquidity pool arrangements are taxed, moving toward a “no gain, no loss” treatment for certain disposals. The policy is designed to defer capital gains tax until a participant makes what HM Revenue & Customs (HMRC) calls an “economic disposal.”

In a notice released on Monday, HMRC said the approach would apply starting April 6, 2027. The move is aimed at aligning tax outcomes with the underlying economics of crypto lending and decentralized liquidity arrangements, where investors may not realize a profit in the usual sense until they dispose of their crypto exposure.

Key takeaways

• HMRC plans to apply a “no gain, no loss” approach to certain disposals tied to crypto loans and liquidity pools from April 6, 2027.
• The change is intended to defer capital gains tax on digital assets until an “economic disposal,” rather than taxing interim events.
• HMRC expects the update to affect around 700,000 individuals and trustees.
• The policy contrasts with earlier HMRC guidance for crypto lending and liquidity pools issued in 2022 after consultation.
• UK capital gains tax rates for 2025–2026 remain in the 18% to 24% range depending on the taxpayer’s rate band, but the timing of when gains are recognized would shift for covered arrangements.

What HMRC is changing for crypto loans and liquidity pools

HMRC’s announcement focuses on “certain disposals” related to cryptocurrency lending and liquidity pool participation. Under the new approach, HMRC says it will treat covered transactions under UK capital gains rules as “no gain, no loss” for situations including acquisition and disposal of an interest in a lending arrangement in exchange for the same type of asset.

The tax authority also indicated that its treatment would extend to cases involving borrowed assets acquired at market value, as well as arrangements operating under similar conditions using automated market makers.

Why “no gain, no loss” is meant to defer tax

HMRC’s stated rationale is that taxing these activities immediately could produce results that do not reflect when economic benefit is actually realized. The authority said the measure supports fairness in the UK tax system and “aligns the tax treatment more closely with the economics of these arrangements” by recognizing gains and losses “only when the participant makes an economic disposal of the cryptoassets.”

In practical terms, the policy is aimed at reducing instances where taxpayers might face capital gains tax consequences from events that are not, from an investor’s perspective, a final exit from their economic position.

Industry feedback and the move away from older guidance

HMRC described the change as significant and connected it to a broader consultation period that followed the authority’s 2022 guidance on crypto liquidity pools and lending. The notice indicates that the update is expected to affect roughly 700,000 people and trustees.

While the precise boundaries of HMRC’s “certain disposals” will matter to taxpayers planning their activities, HMRC’s direction is clear: it intends to reduce administrative pressure on taxpayers by adopting an approach that better matches how crypto lending and liquidity participation are commonly structured.

Aave founder and CEO Stani Kulechov said in an X post on Monday that “This is the right direction,” adding that industry feedback suggested alternative approaches would create “significant admin burden for the tax payer.”

Tax rates remain, but the timing could change

UK rules for 2025–2026 set capital gains tax rates for crypto at between 18% and 24%, depending on whether the taxpayer falls within the basic-rate or higher-rate band, according to UK income tax rate guidance. HMRC’s announcement does not change these headline rates.

Instead, the key difference is when gains and losses would be recognized for covered lending and liquidity pool transactions. By deferring capital gains tax until an “economic disposal,” HMRC is effectively shifting attention from intermediate events within an arrangement to the point at which the taxpayer’s exposure is actually disposed of.

For investors, traders, and liquidity providers, this can matter as much as the headline tax percentage: timing can affect cashflow, how gains line up with other income, and how accurately tax reporting corresponds to realized outcomes.

Separately: a Solana community leader files to run in UK by-election

While HMRC’s announcement reshapes crypto taxation policy, UK politics is also seeing a crypto-adjacent candidate enter the spotlight. Reform leader Nigel Farage will face challengers in a by-election in Clacton following his resignation last week, after reports tied him to donations connected to the crypto industry.

On Tuesday, Stephen Newnham, described as the leader of the Solana community group Superteam UK, said he will run as an independent candidate against Farage and others. The by-election is scheduled for Aug. 13 and, according to reporting that includes non-traditional candidates, will also include comedian and author Jon Harvey in costume as Count Binface.

Farage’s resignation triggered the by-election, and the political narrative around his campaign includes allegations and reporting about financial contributions. Earlier coverage cited a $6.7 million donation connected to crypto billionaire Christopher Harborne, which Farage described at different times as both a “reward” related to the UK’s exit from the European Union and later as a “gift,” and also referenced other assistance linked to George Cottrell, described in that coverage as a convicted fraudster associated with a crypto casino.

For crypto participants in the UK, the next watch points are how HMRC will define and operationalize “certain disposals” and what it will consider an “economic disposal” in practice. With the new framework set to begin in April 2027, taxpayers and platforms alike should prepare for reporting changes and monitor further guidance that turns today’s principle into day-to-day compliance.

Senator Thom Tillis has proposed new CLARITY Act language that would allow federal banking regulators to intervene if stablecoin yields trigger systemwide deposit flight from US banks.

According to a report from Punchbowl, the North Carolina Republican has suggested adding a “circuit-breaker” provision to the Senate’s crypto market structure bill after concerns from banking groups continued to dominate negotiations over stablecoin rules.

The proposal would authorize regulators, including the Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC), to step in if they determine that stablecoin-related activity is causing deposits to leave the banking system at a broader level.

The latest proposal returns attention to one of the most contested sections of the CLARITY Act as lawmakers work toward releasing the Senate text before the chamber’s August recess.

It also comes after earlier negotiations led by Tillis and Senator Angela Alsobrooks produced a compromise allowing crypto firms to offer only activity-based rewards rather than unrestricted yield on stablecoins.

Banking groups continue pushing for tighter stablecoin language

Despite that compromise, banking organizations remain unconvinced that the latest draft adequately protects traditional deposits. As previously reported by crypto.news, several banking associations have argued that the bill’s current wording leaves room for stablecoin issuers to offer incentives that could encourage customers to move money away from bank accounts.

According to those banking groups, the language governing permissible rewards remains too vague and creates uncertainty over how regulators would interpret future stablecoin products. Community banks have been particularly vocal in warning that widespread migration of deposits into yield-bearing digital assets could reduce funding available for lending and other banking activities.

Tillis’ proposed circuit-breaker mechanism appears designed to address those concerns without completely prohibiting stablecoin rewards. Under the framework described by Punchbowl, regulators would receive authority to act only after identifying evidence of systemwide deposit flight rather than imposing an outright ban in advance.

The banking debate is unfolding alongside another dispute that continues to complicate Senate negotiations. Several Democratic lawmakers are pressing for ethics provisions tied to President Donald Trump’s crypto business interests before agreeing to move the legislation forward. 

Earlier this week, Senator Elizabeth Warren urged colleagues to include ethics safeguards in the bill, a development that coincided with a decline in prediction market odds for the legislation’s passage.

Senate prepares to release legislative text

Fresh guidance on the bill’s timeline came during an interview on FOX Business, where Senator Cynthia Lummis said the Senate expects to introduce the CLARITY Act’s legislative text within the next few days.

Speaking during the interview, Lummis stated that the legislation is intended to strengthen consumer protections, help law enforcement combat illicit finance, and keep digital asset markets operating within the United States. She also reiterated that Senate leaders are working toward bringing the measure to the floor before lawmakers leave Washington for the August recess.

Her comments follow earlier reports indicating that Senate leadership is targeting a floor vote before the end of July if negotiations can be completed. Lummis noted, however, that the scheduling decision ultimately rests with Senate Majority Leader John Thune, who controls when legislation is brought before the full chamber.

While supporters continue to push for action before the recess begins, the final Senate text must still bridge disagreements over stablecoin regulation, banking safeguards and ethics provisions before it can secure the bipartisan backing needed to advance.

Shares of CleanSpark surged as much as 22% on Tuesday after the Bitcoin miner announced a 20-year data center lease in Georgia, reflecting its ongoing expansion into digital infrastructure beyond cryptocurrency mining.

CleanSpark said it signed a 20-year triple-net lease with an undisclosed investment-grade global technology company for a 175-megawatt data center at its Sandersville, Georgia, campus. The company estimates the deal will generate approximately $6.6 billion in contracted revenue over the initial term, increasing to $11.6 billion if the tenant exercises two five-year extension options.

Under the agreement, the tenant will install computing infrastructure at the site, with phased deliveries expected to begin in the fourth quarter of 2027.

The agreement is the latest sign of CleanSpark’s push to diversify beyond its core Bitcoin mining business and capitalize on growing demand for AI and high-performance computing infrastructure. Despite the shift, CleanSpark remains one of the largest publicly traded Bitcoin holders. 

CleanSpark has gradually accumulated Bitcoin over the past year. Source: BitcoinTreasuries.NET

CleanSpark (CLSK) shares reached an intraday high of $15.10, before trimming some gains going in the US lunch hour. The stock was recently up about 11%, compared with a gain of less than 1% for the sector-tracking CoinShares Bitcoin Miners ETF (WGMI).

Related: Crypto Biz: Bitcoin maximalism meets the realities of capital markets

Bitcoin miners seek new revenue streams

CleanSpark’s expansion comes as Bitcoin miners face mounting pressure from weaker mining economics, including lower revenues and tighter profit margins following the 2024 halving. In March, the company reported a fiscal second-quarter net loss of $378 million, with nearly 60% of the loss attributed to a decline in Bitcoin’s price.

In February, the company sold a portion of its BTC holdings to help fund operations and growth initiatives.

The company has fared better than many of its peers, however. While several miners have sold significant portions of their Bitcoin reserves to shore up liquidity, CleanSpark has remained a net accumulator. As Cointelegraph reported, publicly traded miners sold roughly 15,000 BTC between October and the end of February.

It is expected to report fiscal Q3 results on Aug. 6, with analyst consensus for a loss of $0.25 per share compared to earnings of $0.79 in the comparable quarter last year, according to Yahoo Finance. It has missed Wall Street estimates in the last three consecutive quarters.

Related: CoreWeave shows how crypto-era infrastructure quietly became AI’s backbone

Ironically, some critics of the bill have pointed to recent reporting by the Wall Street Journal on the Hong Kong exchange CoinEx as evidence of the risk. CoinEx is actually a story of how to use a public ledger to track, trace, and disrupt nation state activity.

Investigators traced roughly 3.84 billion dollars in transactions tied to Iran, connecting wallets controlled by Iran’s central bank to sanctioned military networks and to funds stolen separately by North Korean hackers. That level of detail is knowable today because it happened on a public blockchain, the same visibility critics are treating as the risk.

What the Clarity Act actually contains

Clarity contains nearly twenty distinct provisions addressing anti-money laundering, sanctions, and law enforcement authority.

As the bill is currently drafted, digital asset service providers get brought fully under the Bank Secrecy Act for the first time, with risk assessments, internal controls, a compliance officer, training, audits, and suspicious activity reporting all required.

Real-time information sharing between exchanges and law enforcement gets written into statute as recognized practice — the Beacon Network model of real time interdiction, seizure and disruption — replacing voluntary industry coordination with a legal standard.

An independent working group gets tasked with developing AI-powered tools to detect and disrupt terrorist financing and money laundering in digital asset markets. Kiosk operators face wallet pinning, hold periods, and daily transaction caps for first-time users, paired with blockchain intelligence requirements to catch scammers before funds leave the platform.

After Wall Street saw preliminary earnings results for IBM, it panic sold it down 26%, vaporizing $72 billion of market value before noon. It was the worst single day for IBM since Black Monday in 1987 when its stock dropped 23%.

The 114-year-old Dow component, long a synonym for corporate stability, plunged after pre-announcing its second quarter.

Technically, it wasn’t scheduled to report full results for another week but for some reason, CEO Arvind Krishna wanted to let traders sell early.

This morning, IBM plunged below $214 per share, 26% lower than its Monday close of $290.23. Its market cap fell to $200 billion, down from $272 billion at the close of business yesterday.

By noon, trading volume had already surpassed 37 million shares — 3X its daily average.

The UK’s tax authority announced that it planned to treat “certain disposals” related to cryptocurrency lending and liquidity pools as transactions that would effectively defer the country’s capital gains requirements.

In a Monday announcement, HM Revenue and Customs (HMRC) said that starting on April 6, 2027, it would adopt a “no gain, no loss” approach to disposals involving crypto loans and liquidity pools. According to the tax authority, this measure would defer capital gains tax on digital assets “until an economic disposal.” 

“This measure will support fairness in the tax system,” said the UK tax authority. “It aligns the tax treatment more closely with the economics of these arrangements by ensuring that gains and losses are generally recognized only when the participant makes an economic disposal of the cryptoassets.”

The measure, expected to impact about 700,000 individuals and trustees, would represent a significant change from the authority’s 2022 guidance on crypto liquidity pools and lending following a consultation period. Under UK law for 2025-2026, taxpayers pay between 18% to 24% for capital gains related to crypto transactions depending on whether they qualify as basic-rate or higher-rate.

Related: UK tokenization push could add as much as $44B to annual output by 2035: Report

According to the tax authority, it would treat crypto transactions as “no gain, no loss” under UK capital gains laws for the acquisition or disposal of an interest in a lending arrangement in exchange for the same type of asset, borrowed assets acquired at market value and similar conditions with automated market makers.

“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,” said Aave founder and CEO Stani Kulechov in a Monday X post.

Crypto candidate enters Nigel Farage’s by-election race

In UK politics, Reform leader Nigel Farage will not stand completely uncontested in a by-election caused by his resignation last week amid reports of the politician receiving contributions from billionaires tied to the crypto industry.

On Tuesday, the leader of the Solana community group Superteam UK, Stephen Newnham, said he will run as an independent candidate against Farage and others. The by-election representing Clacton is scheduled for Aug. 13 and will include candidates like comedian and author Jon Harvey in costume as Count Binface, a self-described “independent space warrior” wearing a helmet in the shape of a trash bin.

Farage triggered the by-election with his resignation, saying that he wanted the people of Clacton to judge his actions. The Reform figure reportedly received a $6.7 million donation from crypto billionaire Christopher Harborne, which he described as a ”reward” for the UK’s exit from the European Union and later as a “gift,” and other financial assistance from George Cottrell, a convicted fraudster linked to a crypto casino.

Magazine: Strategy became a symbol of the dot-com crash: Could history repeat?

Cardano co-founder Emurgo has been forced to hand over the running of self-styled “world’s largest crypto event” TOKEN2049 to the Cardano Foundation, following the $20 million hack of its neo-finance platform SecondFi.

That’s according to Intersect, Cardano’s governance firm, which made the announcement on Tuesday.

Intersect stated that Emurgo “is unable to allocate the necessary resources to plan and execute Token2049.”

Emurgo added, “Following the recent SecondFi incident, we have confirmed that our priority right now must be solely the recovery of assets for all affected users.”

Read more: Cardano holders cancel own summit after rejecting $2M funding request

The Cardano Foundation said, “In addition to the Cardano booth, we are also organizing the side event CardanoxDraperxBitcoin funded by Draper and Cardano Foundation. More information will be available soon.”

Cardano users had already voted to cancel the Cardano annual summit in Singapore that was scheduled for October 2026. 

The vote, held last month, also passed a proposal from Emurgo to attend and sponsor TOKEN2049 in Singapore this October.

SecondFi is eating into Emurgo’s responsibilities

Emurgo also stepped down last week from the “Pentad,” an executive body made up of multiple Cardano firms. 

It said, “Our immediate priority is the @secondfiapp recovery process, and we are concentrating our resources where they are needed most.”

SecondFi was hacked for $2.4 million worth of ADA last June. Emurgo used emergency measures at the time to take $18.5 million worth of ADA from users as part of a mysterious white hat hack event.

The mystery stemmed from Cardano’s founder, Charles Hoskinson, who later relayed information that suggested the identity of the white hat hacker was unknown.