IRS Finalizes Crypto Reporting Rules Amid Industry Backlash

The IRS finalized its new crypto broker reporting requirements on June 28, delineating the affected industry participants while addressing widespread concerns. Decentralized exchanges and self-custody wallets, pivotal components of the crypto ecosystem, were excluded from these rules. The IRS clarified this exemption, acknowledging the complexities inherent in fully decentralized networks after reviewing extensive feedback. However, the scope of the regulations encompasses stablecoins and tokenized real-world assets, treating them equivalently to other digital assets. This decision underscores the IRS’s commitment to enhancing tax compliance across all sectors of the digital asset landscape. IRS Commissioner Danny Werfel emphasized the necessity of these