US Treasury finalizes crypto rules to prevent tax evasion

While people who own and sell cryptocurrencies have always had to pay taxes on their income, a new rule finalized by the U.S. Treasury Department can ensure that they pay the appropriate amount on their sales. The new rule will require cryptocurrency platforms such as exchanges and payment processors to report their users’ transactions to the Internal Revenue Service. According to The Wall Street JournalOfficials hope the move will deter tax evasion, since the IRS would know exactly how much a taxpayer owes.

At the same time, the rule will make it much easier for people to report their gains since their brokers will now have to provide them with a 1099 form. The IRS released a draft 1099-DA (Digital Asset Proceeds From Broker Transaction) form last year specifically designed to track crypto transactions and will soon make the final version available. It’s worth noting that the rule sets a $10,000 threshold for reporting transactions involving stablecoins, which are cryptocurrencies that track fiat currencies like the U.S. dollar.

“[I]“Digital asset investors and the IRS will have better access to the documentation they need to easily file and review tax returns,” said Aviva Aron-Dine, acting assistant secretary of the Treasury for tax policy, in a statement. “By implementing the reporting requirements of the law, these final regulations will help taxpayers more easily pay taxes owed under current law, while reducing tax evasion by wealthy investors.”

The new rule will only apply to platforms that take ownership of digital assets, such as Coinbase or Binance. It does not cover decentralized systems, which will have to comply with a separate rule expected to be finalized later this year. Brokers will have to start reporting proceeds from digital asset sales in 2026 for all transactions made in 2025, meaning crypto traders will still be on their own for 2024.

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