According to TechFlow, the IRS has finalized new regulations for taxing cryptocurrencies, and cryptocurrency trading platforms will be required to report transactions to the IRS starting in 2026. However, decentralized platforms that do not hold assets will be exempted.
These are the main elements of the new rules finalized by the Internal Revenue Service and the U.S. Treasury Department on Friday, which essentially implement a provision of the Infrastructure Investment and Jobs Act passed by the Biden administration in 2021.
Even without these new rules, cryptocurrency holders will need to pay taxes; however, there is no real standardization on how to report these holdings to the government and individual investors. Starting in 2026 (covering transactions in 2025), cryptocurrency platforms must provide a standard 1099 form, similar to the forms sent by banks and traditional brokerage firms. In addition to simplifying the tax process for cryptocurrencies, the IRS has also stated that it is working to combat tax evasion.