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Crypto commentator BULLRUNNERS is urging XRP holders to act now, warning that 118 days remain in what he calls the first tax year where brokers must report cost basis on certain digital asset transactions. The warning centers on Form 1099-DA, a new IRS reporting form tied to Treasury Department rules that reshape how crypto transactions get documented starting in 2026.
Until now, brokers typically reported only the proceeds from a digital asset sale — not what the holder originally paid for it. That’s changing, and BULLRUNNERS says the shift creates real record-keeping obligations for anyone holding XRP across multiple platforms.
Not All XRP Gets Treated the Same Way
According to BULLRUNNERS, the new rules split holdings into two categories: covered and non-covered digital assets. XRP that was both acquired and held with the same broker during 2026 generally falls into the covered category, meaning that broker is responsible for reporting the cost basis.
But XRP purchased before 2026 doesn’t get that same treatment. Neither does XRP that’s been moved between exchanges or wallets, since the broker receiving the transfer typically has no way of knowing what was originally paid for it. For holders who’ve been in XRP for years and moved coins between cold storage, exchanges, and other wallets — a common pattern — that means a meaningful chunk of their holdings could fall outside any broker-reported cost basis. In those cases, a broker may report the sale proceeds while simply leaving the cost basis field blank.
BULLRUNNERS was blunt about what that means for holders who don’t have their own records. As he put it, the IRS does not assume a fair purchase price was paid — it doesn’t assume anything at all.
Also Read: XRP Needs Two Breakouts to Reach $2.00 — Here’s What Traders Are Watching
Why “One Universal Pool” No Longer Works
Another shift BULLRUNNERS flagged involves Revenue Procedure 2024-28, which changes how digital asset records are tracked. He said holders should stop treating their XRP as a single combined pool for cost-basis purposes. Instead, basis now needs to be tracked per location — meaning exchanges, hardware wallets, and on-chain wallets can each require their own separate records of units held, acquisition dates, and original cost.
He also pointed to safe-harbor provisions, effective since January 1, 2025, that allow holders to allocate unused basis across different locations — but only if the underlying records exist to support it.
BULLRUNNERS noted that unlike certain stablecoin transactions with a $10,000 reporting threshold, or specified NFTs with a $600 threshold, XRP doesn’t get an equivalent carveout under these rules. He also raised the broader point that Form 1099-DA can link a public blockchain address to identifying information submitted by a regulated broker.
BULLRUNNERS’ core message is about control: holders who document their own positions now have a clearer, more defensible record than those who leave it to be pieced together later. He’s encouraging XRP holders to gather records before year-end and bring them to a qualified tax professional, while pointing to Treasury Decision 10000, Revenue Procedure 2024-28, and IRS Form 1099-DA guidance as key reference points. He also noted that his content is educational and isn’t a substitute for professional tax advice.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
