News View Non-AMP

US Government Rolls Out New Crypto Tax Guidelines, Lets Miners Breathe Easy

Published by
Shayan Chowdhury

According to a recent report by the Wall Street Journal, the Biden Administration has unveiled its much-anticipated new tax reporting rules for digital assets. While some decentralized exchanges (DEXs) find themselves under increased scrutiny, cryptocurrency miners can breathe a sigh of relief.

US Treasury Defines ‘Broker’ For Crypto Industry

Under a newly proposed rule from the U.S. Treasury Department, crypto brokers—including exchanges and payment processors—would be required to disclose additional user transaction data to the Internal Revenue Service (IRS). This initiative is a component of a wider effort by both Congress and regulatory agencies to clamp down on crypto users who might be evading tax obligations.

The U.S. Treasury Department has clarified its “broker” definition for the crypto industry, outlining tax reporting duties for various crypto entities. A new tax form, 1099-DA, has been introduced for this purpose. The guidance, part of a 300-page proposal, states that miners are exempt, but some decentralized finance platforms must adhere to the tax rules.

The proposal defines “broker” to include centralized and decentralized crypto trading platforms, payment processors, and certain digital wallets. It covers cryptocurrencies such as Bitcoin and Ethereum, as well as NFTs.

Major crypto exchanges and brokers have been given more time than initially expected to adapt to new tax-reporting rules under the 2021 Infrastructure Investment and Jobs Act. The proposal is still under review, with public comments accepted until October 30 and hearings scheduled for November 7-8.

Decentralized exchanges may face challenges due to reporting requirements. Final rules will be set after months of industry lobbying, aiming for implementation by the 2025 tax year. This offers the industry some leeway, as many had expected changes as early as next year.

The Treasury said, “This is part of a broader effort at Treasury to close the tax gap, address the tax evasion risks posed by digital assets, and help ensure that everyone plays by the same set of rules.”

These New Rules Could Bring $28 Billion

The proposal expands reporting obligations to digital asset transactions exceeding $10,000 in cash. When the bill was enacted, it was projected to generate nearly $28 billion in revenue over ten years.

The IRS confirmed to the industry last year that existing laws and regulations would remain in effect until the new tax guidelines are finalized. Despite the recent release of the proposal, the process is far from being completed.

Regarding the law’s stipulations, several complex issues remain to be addressed. These include how companies handle transactions involving private wallets that are not visible to the business, and how broker records will account for activities on fully decentralized platforms.

The updated tax rules signal that the U.S. government is giving significant attention to the crypto sector, as evidenced by legal actions against major exchanges like Binance and Coinbase, as well as legislative measures concerning crypto stablecoins.

Shayan Chowdhury

Shayan is a digital nomad and a professional journalist. He delivers high-quality engaging articles to Coinpedia through his in-depth research and analysis.

Recent Posts

3 Best Altcoins for High ROI in 2025

Now that we’ve seen the worst of the crypto market, it’s time to prepare for…

April 28, 2025

$330 Million Bitcoin Hack Drives Monero’s Price Surge

The crypto world was jolted overnight as Monero (XMR) prices surged by more than 50%,…

April 28, 2025

XRP Becomes Most Traded Altcoin in Japan, Surpassing Ethereum

Japan’s banking sector is gearing up for a major shift, with nearly 80% of banks…

April 28, 2025

Why XMR Price Surging Today – Key Reason Behind It

Monero (XMR), known for its focus on privacy and anonymity, has surged nearly 50%, reaching…

April 28, 2025

Top Token Unlock Upcoming This Week- Is a Major Volatility on the Horizon?

The crypto markets are getting stronger and stronger as Bitcoin sustains strongly above the gains.…

April 28, 2025

Cardano Price Prediction: Hoskinson Predicts $3, $5 and $10 ADA Soon

Charles Hoskinson, the founder of Cardano, has made bold predictions for ADA. According to him,if…

April 28, 2025