Core Insights - Crypto salaries are declining despite Bitcoin's strong performance, as companies focus on cost discipline and normalize pay after aggressive expansion [1][2] - The industry is experiencing a cooling period, moving from explosive growth to a more structured approach in talent and capital distribution [2][5] Compensation Trends - The 2024/2025 Crypto Compensation Report indicates a broad decline in average total compensation across most seniority levels, with mid-level roles seeing flat growth and entry-level positions facing the steepest cuts [3][4] - Executive-level compensation has seen meaningful increases, creating a "barbell effect" where gains are concentrated at the top while most of the workforce experiences stagnation or decline in pay [4][5] Hiring Dynamics - Hiring has slowed, averaging 3.8 weeks per role with four interview rounds, and about 68% of job offers are accepted, primarily influenced by salary expectations [3] - Entry-level positions account for approximately 10% of total roles, while engineering roles make up about two-thirds of the workforce [4] Geographic Insights - Western Europe remains a dominant region in the crypto labor market, benefiting from venture funding, regulatory clarity, and institutional infrastructure [6]

Core Insights - The IRS's new digital asset reporting rules are turning crypto payroll from a simple HR perk into a compliance challenge for employers [1][2] - Companies that previously utilized crypto compensation to attract talent are now facing complex reporting requirements that many payroll departments are unprepared for [2][3] Group 1: Regulatory Changes - The introduction of Form 1099-DA and Revenue Procedure 2024-28 has created a challenging reporting environment for payroll departments [2] - Employers must now transition from treating crypto payroll as a straightforward W-2 transaction to a more complex basis documentation process [3][4] Group 2: Compliance Challenges - Payroll teams are required to adapt their processes to include basis reporting alongside traditional wage reporting to avoid confusion and potential penalties [4][5] - The new framework emphasizes gross proceeds reporting without cost basis, leading to potential double taxation issues for employees if proper documentation is not maintained [4][5] Group 3: Operational Implications - Revenue Procedure 2024-28 necessitates wallet-level basis tracking, complicating the payroll process and requiring detailed ledger management [5] - Companies must ensure they provide wallet-level cost basis support to employees to prevent conflicts between W-2s and 1099-DAs [5]