Crypto platforms will need to report transactions to the Internal Revenue Service, starting in 2026. However, decentralized platforms that don’t hold assets themselves will be exempt.🚀
Those are the main takeaways from new regulations that the IRS and U.S. Department of Treasury finalized Friday — essentially implementing a provision of the Biden Administration’s Infrastructure Investment and Jobs Act, which was passed in 2021.
Gains from selling crypto and other digital assets are taxable even without these new regulations; however, there was no real standardization around how those holdings were reported to the government and to individual investors. Beginning in 2026 (covering transactions in 2025), crypto platforms must provide a standard 1099 form, similar to the ones sent by banks and traditional brokerages.
Beyond making it simpler to pay taxes on crypto, the IRS also said it’s trying to crack down on tax evasion.
“We need to make sure digital assets are not used to hide taxable income, and these final regulations will improve detection of noncompliance in the high-risk space of digital assets,” said IRS Commissioner Danny Werfel in a statement.
But again, these regulations apply to “custodial” platforms (such as 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 IRS said they will cover these decentralized brokers in a separate set of regulations.#CryptoDawar #Crypto_Jobs🎯 #BinanceSquareFamily #BinanceTournament
