U.S. Treasury Unveils New Cryptocurrency Tax Framework

The U.S. Treasury Department has announced a comprehensive tax framework for cryptocurrency transactions, signifying a major regulatory step for the industry. Starting January 1, 2025, the IRS will enforce strict reporting requirements for digital asset brokers, including platforms, wallet services, and kiosks, covering transactions involving cryptocurrencies, stablecoins, and high-value NFTs. Major platforms like Coinbase and Kraken are primarily targeted, while decentralized exchanges and unhosted wallets have a temporary reprieve.
The framework, a response to the 2021 Infrastructure Investment and Jobs Act, aims to enhance transparency and compliance with tax laws. Key provisions include brokers tracking the “cost basis” of assets from 2026 and reporting real estate transactions involving cryptocurrencies. The IRS deferred decisions on classifying tokens as securities or commodities but emphasized tax compliance.
Industry critics worry about the burden on smaller entities, but the IRS insists the regulations are vital for tax enforcement. The IRS remains open to revising the rules based on legislative changes, particularly for stablecoins. This move sets a precedent for global cryptocurrency regulation, with significant implications for market dynamics and investor behavior.