A $7 billion crypto ETF plumbing boom just ran into the IRS

- The IRS has spotted the $7 billion crypto ETF plumbing boom and is now asking, “Who wrote this?” Treasury Secretary Scott Bessent isn’t playing nice, targeting the in-kind redemption trick fund managers use to dodge the 90% RIC income test. It’s not a ban yet, just a stern look from Washington before they decide if your tax strategy is clever or criminal. BlackRock moved billions in Bitcoin via these pipes, but the real risk lies with RICs trying to hide gains by swapping assets instead of selling them. This isn’t theft; it’s attention redistribution for the government’s ledger. If you’re stretching provisions beyond their intended purpose, expect new rules that might hit retroactively. Don’t be a meat wallet for the Treasury’s enforcement budget.