The U.S. Department of the Treasury has made a significant move in the cryptocurrency market by introducing a new proposal for crypto brokers, aiming to curb tax evasion.
The proposal is intended to provide the government with more data on cryptocurrency trading. Notably, it’s specified that decentralized exchanges will also be included in this reporting process.
New Reporting Requirement for U.S.-Based Crypto Exchanges from 2026
Leading U.S. cryptocurrency exchanges, Coinbase Global Inc. and Kraken, will be obligated to report detailed information about their customers’ transactions to the IRS (Internal Revenue Service) starting in 2026, according to the Treasury’s new proposal. This signifies a significant change for both the exchanges and crypto investors.
New Measures in the Fight Against Tax Evasion
This new set of regulations, jointly presented by the Treasury Department and the Internal Revenue Service, is seen as a serious step in preventing tax evasion related to cryptocurrency. The proposal elaborates on reporting rules introduced in 2021 that aimed to make customer trading more transparent and adds further stipulations to these rules.
Previously, the Joint Committee on Taxation had estimated that this measure would generate an additional $28 billion in revenue for the government over 10 years. With the rapid growth of cryptocurrency trading, these new regulations are expected to be an effective tool against tax evasion.
Source: Bloomberg
