The United States Internal Revenue Service has released proposed regulations on the sale and exchange of digital assets by brokers.
The United States Internal Revenue Service (IRS), which is responsible for tax collection in the United States, has released proposed regulations on the sale and exchange of digital assets by brokers. Under the rules, brokers would be required to use a new form to simplify tax filings and cut down on tax cheating. According to the U.S. Treasury, the regulations bring digital asset reporting into line with reporting on other types of assets.
The proposed rules would go into effect in 2026 to reflect sales and exchanges carried out in 2025. Written comments on the proposal are being accepted through Oct. 30, with at least one public hearing to be held after that date.
Several prominent crypto commentators have criticized the new crypto tax reporting rules. Kristin Smith, the CEO of the Blockchain Association, highlighted the difference between the crypto ecosystem and traditional finance. DeFi Education Fund CEO Miller Whitehouse-Levine called the rules “confusing, self-refuting, and misguided.” Messari CEO Ryan Selkis stated that President Joe Biden’s reelection would mean no future for the crypto industry in the country. Representative Patrick McHenry, the House Financial Services Committee chairman, called the proposal “another front in the Biden Administration’s ongoing attack on the digital asset ecosystem.”
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