The Treasury Department announced that, starting in 2026, most crypto brokers will be required to report users' transaction proceeds to the IRS to prevent tax evasion. This rule applies to crypto exchanges and payment processors like Coinbase but excludes decentralized exchanges. The IRS clarified this is not a new tax but aligns with existing rules for traditional financial services. The new requirement aims to simplify tax reporting for crypto traders, who have previously relied on costly and often inaccurate services. The regulation is expected to generate $28 billion in tax revenue.

Source: Forbes