US Treasury, IRS propose cryptocurrency regulations for brokers

Brokers referred to as “digital asset middlemen” must report gains/losses from crypto sales starting in 2026.
Regulations aim to deliver "higher levels of taxpayer compliance" as IRS gets clarity on income.
Public hearing on regulations scheduled for Nov 7, 2023.
Regulations require brokers to file 1099-DA forms and provide payee statements.
US Government Accountability Office report calls for stricter crypto regulations to mitigate risks.

cointelegraph.com

Relevant topic timeline:

8/25/2023

U.S. Crypto Tax Proposal Lets Miners Off the Hook, Snares ‘Some’ Decentralized Exchanges

The US Treasury Department has proposed new tax rules for crypto exchanges, hosted wallet providers, and payment processors, requiring them to meet tax reporting obligations, while exempting miners and some decentralized finance platforms.

8/25/2023

Sweeping U.S. Tax Proposal Met With Boos From Crypto World

The U.S. Treasury Department's new proposal on digital asset taxes is facing criticism from the crypto industry, as it may capture decentralized operations that are difficult to comply with, although it may also provide a clear path for crypto investors to file their taxes.

8/25/2023

IRS releases draft of proposed reporting rules for digital asset brokers

The United States Internal Revenue Service (IRS) has proposed regulations that would require brokers to report the sale and exchange of digital assets using a new form, aiming to simplify tax filing and reduce tax fraud. The proposed regulations align digital asset reporting with reporting on other types of assets, and it is part of the Biden administration's implementation of the Infrastructure Investment and Jobs Act. The proposed rules are expected to go into effect in 2026 and have received mixed reactions from industry advocates and lawmakers.

8/29/2023

Treasury proposes crypto reporting rule to 'close the tax gap.' What it means for investors

The U.S. Treasury and IRS have proposed regulations for crypto tax reporting, emphasizing the importance of accurately reporting and tracking crypto activity; investors are advised to consider amending past tax returns and keep their own records despite the introduction of Form 1099-DA.

9/6/2023

IRS’s New Crypto Tax Rules Pose A Threat To DeFi

The IRS has issued proposed regulations defining the term "broker" in relation to digital assets, including decentralized finance platforms, and outlining tax reporting requirements for cryptocurrency transactions, which could have implications for DeFi platforms and users.

9/7/2023

Depressed Crypto Markets, Regulatory Risks Fail to Dissuade Asset Managers From Investing

Despite the uncertain regulatory environment and the current state of the crypto markets, asset managers remain interested in digital assets and expect the industry to grow in the next five years, with many estimating a compound annual growth rate of at least 11%.

9/7/2023

New Accounting Rules Help Companies Holding Crypto Like Tesla

The U.S. Financial Accounting Standards Board has voted to change how digital assets are valued, a move that could benefit companies, including Tesla and Bitcoin, that hold cryptocurrency.

9/26/2023

IRS Crypto Reporting Rules Raise Concerns for Privacy, Innovation

The IRS's proposed rule requiring newly designated brokers to report sales and exchanges of digital assets could have catastrophic consequences, killing crypto and decentralized finance (DeFi) in the United States by creating unworkable reporting requirements and hindering innovation in the blockchain technology industry.

Topics

Posted 9/7/2023, 9:00:00 AM

US Treasury, IRS propose cryptocurrency regulations for brokers

Brokers referred to as “digital asset middlemen” must report gains/losses from crypto sales starting in 2026.
Regulations aim to deliver "higher levels of taxpayer compliance" as IRS gets clarity on income.
Public hearing on regulations scheduled for Nov 7, 2023.
Regulations require brokers to file 1099-DA forms and provide payee statements.
US Government Accountability Office report calls for stricter crypto regulations to mitigate risks.

cointelegraph.com

Relevant topic timeline:

8/25/2023

U.S. Crypto Tax Proposal Lets Miners Off the Hook, Snares ‘Some’ Decentralized Exchanges

8/25/2023

Sweeping U.S. Tax Proposal Met With Boos From Crypto World

8/25/2023

IRS releases draft of proposed reporting rules for digital asset brokers

8/29/2023

Treasury proposes crypto reporting rule to 'close the tax gap.' What it means for investors

9/6/2023

IRS’s New Crypto Tax Rules Pose A Threat To DeFi

9/7/2023

Depressed Crypto Markets, Regulatory Risks Fail to Dissuade Asset Managers From Investing

9/7/2023

New Accounting Rules Help Companies Holding Crypto Like Tesla

The U.S. Financial Accounting Standards Board has voted to change how digital assets are valued, a move that could benefit companies, including Tesla and Bitcoin, that hold cryptocurrency.

9/26/2023

IRS Crypto Reporting Rules Raise Concerns for Privacy, Innovation