US Treasury Releases New Cryptocurrency Tax Rules.

The IRS has developed a tax reporting framework for cryptocurrency brokers that will be implemented in 2025. The framework does not include decentralized finance and non-hosted wallets, although the rules for those will come later in the year.

Under the new framework, crypto brokers, hosted wallet services and digital asset distributors must file 1099 tax forms to report gains on their users' digital assets. These assets include coins, tokens, NFTs and stablecoin transactions above a certain limit.

Since the new regime is focused on large centralized companies, it does not yet include decentralized financial activities or decentralized wallets' income and tax reporting procedures. However, the DeFi regulations are said to come later in the year and come into force along with the rest of the framework in January 2025.

The regime stipulates that users who receive less than $10,000 worth of stablecoins annually are exempt from reporting. In addition, crypto brokers can report stablecoin sales as an aggregate, even though they must report sophisticated and high-volume individual sales separately.

For NFTs, users are exempt from reporting NFT sales of less than $600 in a fiscal year.

Starting in 2026, crypto brokers will be required to keep cost-effective records for all assets, including the price at which users buy their assets. Real estate transactions organized with crypto are also reported using the fair market value of the digital assets used.