The IRS has finalized new rules for taxing cryptocurrencies, requiring crypto platforms to report transactions to the IRS starting in 2026, but decentralized platforms that do not hold assets themselves will be exempt.
These are the main points of the new rules finalized by the IRS and the U.S. Treasury on Friday 1, essentially implementing a provision of the Infrastructure Investment and Jobs Act passed by the Biden administration in 2021.
Even without these new rules, cryptocurrency holders 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 standard 1099 forms, similar to those sent by banks and traditional brokerage firms. In addition to simplifying the tax process for cryptocurrencies, the IRS also said it is working to combat tax evasion. (techcrunch)