On June 28, the US Treasury and IRS issued final regulations outlining new reporting requirements for digital asset brokers.

Starting in 2026, crypto brokers, including exchanges, must report gross proceeds from crypto sales, including those from 2025. In 2027, brokers will also need to report the tax basis of some cryptos for sales that occurred in 2026.

These regulations align crypto broker reporting rules with those for traditional financial brokers but do not change the taxes owed by taxpayers. The Treasury stated:

“Owners of digital assets have always owed tax on the sale or exchange of digital assets.”

The rules are part of the Biden-Harris Administration's implementation of the bipartisan Infrastructure Investment and Jobs Act (IIJA), which established reporting requirements without imposing new taxes on crypto.

These requirements mainly affect custodial brokers, with the Treasury planning to issue rules for non-custodial brokers by the end of the year.

Benefits for investors and the IRS

Acting Assistant Secretary for Tax Policy Aviva Aron-Dine mentioned that crypto investors will now have better access to documentation needed for filing and reviewing tax returns. Previously, investors had to rely on costly third-party services to calculate gains and losses from crypto sales. The new requirements aim to provide all necessary information directly to investors.

The IRS will also benefit from better access to information to address tax evasion risks associated with crypto, including evasion by wealthy investors.

Industry resistance

The Treasury and IRS conducted public hearings and reviewed over 44,000 comments before finalizing the rules. Treasury officials indicated that the final requirements have been adjusted to reduce burdens on brokers, introduce phased requirements, and set a $10,000 threshold for stablecoin transaction reporting.

Reuters reported that the industry had opposed the requirements due to privacy concerns and the broad definition of a broker. For instance, Coinbase argued in October 2023 that the regulations would lead to “unprecedented, unchecked, and unlimited tracking” of users’ activities and impose new and burdensome reporting requirements.