Crypto platforms will have to report their transactions to the Internal Revenue Service starting in 2026. However, decentralized platforms that do not hold assets themselves will be exempt.
Those are the key takeaways from the new regulations the IRS and the U.S. Treasury Department finalized Friday — essentially implementing a provision of the Biden administration’s Infrastructure Investment and Jobs Act, which passed in 2021.
Gains from the sale of cryptocurrencies and other digital assets are taxable even without these new regulations; however, there was no real standardization in how these gains were reported to individual investors and the government. Starting in 2026 (covering transactions in 2025), crypto platforms will be required to provide a standard 1099 form, similar to those sent by traditional banks and brokerages.
In addition to making it simpler to pay taxes on cryptocurrencies, the IRS also said it is trying to combat tax evasion.
“We must ensure that digital assets are not used to hide taxable income, and these final regulations will improve detection of non-compliance in the high-risk digital asset space,” IRS Commissioner Danny Werfel said in a statement.
But again, these regulations apply to “custodial” platforms (like Coinbase) that actually take possession of customer assets. After lobbying from the crypto industry, decentralized brokers that don’t take possession are excluded from these rules.
In fact, the Blockchain Association (an industry lobbying group) called the exclusion “a testament to the incredibly powerful voice of our industry and community.”
The Treasury Department and the IRS have said they will cover these decentralized brokers in a separate set of regulations.
News Source : techcrunch.com
Gn bussni
