IRS Finalizes Rule Requiring DeFi Brokers to Report Crypto Income The Internal Revenue Service (IRS) has finalized a rule that requires brokers in the decentralized finance (DeFi) space to report the gross proceeds from the sale of digital assets, according to Blockworks. The updated rule treats DeFi brokers the same as securities brokers, requiring them to collect information about their users' transactions and file Form 1099s. “Applying consistent tax reporting requirements for cryptocurrency to match how other assets are reported will make it easier for taxpayers to meet their tax obligations and will help reduce the tax gap,” said Acting Deputy Assistant Secretary for Tax Policy Aviva Aron-Dine in a statement. The rule is set to go into effect for transactions occurring after Jan. 1, 2027.