Taxation of cryptocurrencies and other digital assets has entered a decisive new phase in the U.S. The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have finalized two major sets of regulations that reshape how digital-asset transactions are reported and monitored.
The first, issued June 28 and published July 9, 2024, established the core-broker-reporting framework under the Infrastructure Investment and Jobs Act. The second, finalized in late December 2024, extended those rules to additional intermediaries such as certain decentralized and non-custodial platforms. Together, these actions mark a major step toward greater transparency and compliance in the digital-asset ecosystem.
U.S. Treasury Department Final RegulationsStarting for the tax year 2025, brokers who facilitate the sale or exchange of digital assets must report customers' gross proceeds to the IRS and provide taxpayers with a Form 1099-DA (Digital Asset Proceeds From Broker Transactions). These forms will be furnished in early 2026 for 2025 transactions. This is very similar to Form 1099-B, which is used to report stock and bond transactions.
The rules apply to custodial brokers—centralized exchanges, hosted wallet providers, and certain payment processors—that take possession of customer digital assets. Reporting of cost-basis information will be phased in beginning with 2026 transactions.
The new rules don’t limit the definition of “brokers” to traditional exchanges but include “digital asset middlemen”—intermediaries that facilitate digital asset sales or transfers. The rules also cover not only cryptocurrency but “all digital assets,” defined as “any digital representation of value recorded on a cryptographically secured, distributed ledger (blockchain) or similar technology,” This includes assets like non-fungible tokens (NFTs), stablecoins, and tokenized assets.
For investors, this means the IRS will now receive direct transaction data from the platforms you use to trade digital assets. Because of this, it’s critical to make sure you’re accurately reporting any transactions involving digital assets as required by your tax return. On the other hand, the rules also make it simple to do this, since you will receive this information on your copy of the 1099-DA.
Staking is a process whereby individuals (stakers) participate in a blockchain network by holding and “staking” their digital assets to validate transactions and secure the network. In return for their participation, stakers receive rewards in the form of additional digital assets. The high-profile Jarrett v. United States case raised the question of whether staking rewards should be taxed at receipt or at only when sold. In July 2023, the IRS issued Revenue Ruling 2023-14, affirming that the fair market value of staking rewards are taxable as ordinary income at the time they are received. So, any staking rewards you receive should be reported on your tax return, even if you haven’t traded them.
Additionally, the IRS has clarified that digital assets received as a result of hard forks (the splitting of one digital currency into two) as well as other types of crypto rewards must also be reported. Digital asset holders are expected to maintain precise records of cost basis and transaction histories so they can accurately report these details to the IRS.
However, broker reporting for certain transactions—such as staking, wrapping and unwrapping tokens, and DeFi lending—is deferred pending further rulemaking. Taxpayers are still responsible for reporting these items as income even if brokers are not yet required to issue forms for them.
If your portfolio includes cryptocurrency, NFTs, stablecoins, or similar investments, it’s important to understand how the legal landscape around digital assets is evolving.
The tax environment for digital assets is maturing and becoming more structured. Investors who neglect compliance risk penalties, audits, and missed opportunities to optimize their tax and investment strategy.
At Stable Rock, we monitor regulatory and legal developments in real time, model their likely impact, and help clients adapt their strategies and reporting practices before new rules take effect. Our team supports investors, founders, and finance leaders with smart strategy, airtight compliance, and audit-ready records, so you can stay ahead as crypto tax rules continue to evolve.