IRS Proposes New Crypto Tax Rules: What You Need to Know

• The US Treasury Department has proposed updated tax rules that would require crypto businesses to interact with the IRS in a similar fashion to traditional brokers handling stock and mutual fund portfolios.
• These regulations extend to other digital assets, such as nonfungible tokens (NFTs) and decentralized finance (DeFi) platforms.
• Starting from 2026, crypto intermediaries will be required to submit annual reports on Form 1099s to the IRS and taxpayers indicating the gross proceeds from transactions.

US Treasury Proposes Crypto Tax Rules

The US Treasury Department has proposed new tax rules for cryptocurrencies that would require crypto businesses to treat the Internal Revenue Service (IRS) in a similar manner as traditional brokers dealing with stock portfolios and mutual funds. This means that starting from 2026, crypto intermediaries such as DeFi platforms will have to submit annual reports on Form 1099s indicating the gross proceeds of transactions made by customers. The proposed regulations also extend to other digital assets such as non-fungible tokens (NFTs).

Rep. Patrick McHenry Calls Proposed Crypto Tax Rules an ‚Attack on Digital Asset Ecosystem‘

Congressman Patrick McHenry recently voiced his disapproval of the proposed crypto tax rules, calling them an ‚attack on digital asset ecosystem.‘ He believes that these taxes could stifle innovation in the space and further impede mass adoption of cryptocurrencies.

Worldcoin Whistleblower Severs Ties With Project

A Worldcoin whistleblower recently publicly severed ties with their project, claiming that it ‘deserves whatever comes next’ due to its alleged mismanagement of funds raised through ICOs. Nate Chastain was also sentenced to three months for insider trading at OpenSea earlier this year.

Binance Allegedly Maintains Ties with Blacklisted Russian Banks Despite Sanctions

According to a recent report by Wall Street Journal, Binance allegedly maintains ties with blacklisted Russian banks despite Western sanctions aimed at limiting Russia’s access to international financial services networks. It is unclear how this connection affects users outside of Russia or if any action will be taken against Binance for maintaining these relationships.

Sam Bankman-Fried Allowed Supervised Internet Access

Cryptocurrency entrepreneur Sam Bankman-Fried was recently granted supervised internet access while awaiting trial for securities fraud related charges stemming from his involvement in Blockstack’s Token Offering Event back in 2019. The court ruling allowed him only one supervised session per week so he can meet with lawyers regarding his case preparation materials.