U.S. crypto holders have a little more than two weeks left to make any final moves before new federal reporting requirements take effect on Jan. 1, 2026. The upcoming rules will put digital asset platforms under the same framework that governs stock and bond brokerages, a shift that tax professionals say could reshape how many investors approach their year-end planning.
Starting in 2026, centralized trading platforms must send the Internal Revenue Service detailed information on both the purchase price and the sale price for every customer’s crypto transaction.
With the new system approaching, many traders are reviewing their positions to decide whether certain sales make more sense under the current 2025 framework. Under today’s rules, platforms only report total proceeds, not a customer’s original purchase price. For now, investors still calculate and report their own cost basis on Form 8949.
The shift is expected to create added complications for people who move assets between several platforms, especially when they use both decentralized and centralized platforms. Situations that have long allowed flexibility will soon be more rigid.
Consider an investor who purchased one Bitcoin at a higher price on one exchange and another at a lower price on a different platform. If the person sells a single coin today, they can choose which purchase price to use when calculating their gain. Once the new rules take effect, each exchange must report its own figures, which could lead to a higher taxable gain if the platform involved in the sale shows a lower original cost.
The new requirement stems from rules included in the 2021 federal infrastructure law, which sought to close gaps in crypto tax compliance. Although the government has issued guidance on how digital assets are treated for years, regulators acknowledge that the industry has changed dramatically. The IRS has said it is still reviewing a wide range of activities, from decentralized protocols to more niche forms of earning rewards.
In a notice released in 2024, the agency explained that it is studying newer transaction types to determine how they should be taxed. That has left taxpayers unsure how to classify certain earnings or transfers. While the IRS has promised not to penalize taxpayers for limited categories of transactions while the rules evolve, people are still expected to keep careful records.
One area drawing particular attention is crypto staking. Some industry groups argue that these rewards should not be taxed until a person sells or spends them. So far, the government maintains that such rewards count as income at the moment they are received. More detailed guidance on staking and other complex activities is expected next year, just as the new reporting regime takes hold.
Crypto firms like Marathon Digital Holdings Inc. (NASDAQ: MARA) will have to study any upcoming rule changes and establish how the evolving regulatory landscape impacts their operations.
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