Through Earn, you can earn income on your loaned cryptocurrencies that is reportable on a Form 1099-MISC and realized as you accrue it. Since the income is paid in cryptocurrency, you can also accrue a gain (or loss) on those assets that would be realized upon disposition of the assets. The cost basis for each asset will be captured on a monthly basis, and will equal to the amount reported on the form 1099-MISC for the year.
This content is for general informational purposes only and is not tax advice. You should consult a qualified, licensed advisor to understand the risks and reporting obligations before engaging in any transaction.