The
US
Treasury
and
IRS
released
final
regulations
defining
the
new
reporting
requirements
for
digital
asset
brokers
on
June
28.
Crypto
brokers,
including
exchanges,
will
need
to
report
gross
proceeds
for
crypto
sales
starting
from
2026.
This
will
include
crypto
sales
during
2025.
Furthermore,
brokers
will
need
to
report
information
about
the
tax
basis
of
some
cryptos
starting
in
2027
for
sales
that
occurred
in
2026.
The
new
regulations
establish
rules
for
crypto
brokers
in
line
with
those
for
traditional
financial
brokers
but
do
not
impact
what
taxpayers
owe.
The
Treasury
said:
“Owners
of
digital
assets
have
always
owed
tax
on
the
sale
or
exchange
of
digital
assets.”
The
Treasury
said
the
rules
are
part
of
the
Biden-Harris
Administration’s
implementation
of
the
bipartisan
Infrastructure
Investment
and
Jobs
Act
(IIJA),
which
did
not
impose
new
taxes
on
crypto
but
“simply
created
reporting
requirements.”
The
latest
requirements
primarily
concern
custodial
brokers.
The
Treasury
expects
to
issue
rules
for
non-custodial
brokers
in
accordance
with
statutory
requirements
before
the
end
of
the
year.
Benefits
to
investors
and
IRS
Acting
Assistant
Secretary
for
Tax
Policy
Aviva
Aron-Dine
said
crypto
investors
will
have
“better
access
to
the
documentation
they
need
to
easily
file
and
review
tax
returns.”
Previously,
investors
had
to
use
costly
third-party
services
to
calculate
gains
and
losses
from
crypto
sales.
By
contrast,
the
new
requirements
will
provide
investors
with
all
necessary
information
in
line
with
the
bipartisan
directive
from
Congress.
Meanwhile,
the
IRS
will
gain
access
to
information
it
needs
to
address
tax
evasion
risks
related
to
crypto,
including
tax
evasion
by
wealthy
investors.
Earlier
industry
resistance
The
Treasury
and
IRS
said
they
conducted
public
hearings
and
considered
more
than
44,000
comments
before
finalizing
the
rules.
Reuters
separately
cited
Treasury
officials
who
said
the
final
requirements
have
been
modified
from
their
earlier
form.
The
final
requirements
reduce
burdens
on
brokers,
phase
in
requirements
in
stages,
and
set
a
$10,000
threshold
for
stablecoin
transaction
reporting.
Reuters
noted
that
the
sector
had
“waged
a
comment
letter
campaign”
in
2023
focused
on
privacy
concerns
and
the
broadness
of
the
requirements’
broker
definition.
One
company
that
expressed
opposition
was
Coinbase,
which
complained
in
October
2023
that
the
regulations
would
impose
“unprecedented,
unchecked,
and
unlimited
tracking”
on
users’
daily
lives
and
create
new
and
burdensome
reporting
requirements.
Mentioned
in
this
article
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Author: Mike Dalton
