New US Treasury Crypto Tax Rules Being Implemented in 2025

Key Points:

• The IRS has introduced new cryptocurrency tax rules for brokers starting in 2025, focusing on transaction record-keeping, including stablecoins and NFTs.
• Rules for DeFi and non-custodial wallets are delayed for further study, while mainstream platforms must comply soon.
• US Treasury crypto tax rules aim to prevent tax evasion and align crypto tax reporting with traditional financial instruments after public consultation.

The Internal Revenue Service (IRS) of the US Treasury Department has unveiled new cryptocurrency tax regulations slated to commence in 2025. These rules aim to establish clear record-keeping standards for digital asset brokers, including trading platforms and custodial wallet services.

IRS Announces 2025 Cryptocurrency Tax Rules

However, rules concerning decentralized finance (DeFi) and non-custodial wallets have been postponed for further study. The IRS acknowledges that while mainstream crypto platforms, handling the majority of transactions, cannot wait any longer for rules, complexities surrounding these areas require additional research.

Effective from 2025, the new US Treasury crypto tax regulations mandate brokers to meticulously track the cost basis of clients’ tokens, with enforcement beginning in 2026. They require disclosures from platforms on changes in client assets and earnings, encompassing stablecoins like USDT and high-value Non-Fungible Tokens (NFTs) under specific conditions.

These measures, rooted in the $1 trillion bipartisan Infrastructure Investment and Jobs Act of 2021, are anticipated to generate approximately $28 billion over a decade by curbing tax evasion among crypto users.

New US Treasury Crypto Tax Regulations Target Violating Elements

Aviva Aron-Dine, Acting Assistant Secretary for Tax Policy, noted that US Treasury crypto tax regulations will simplify tax reporting for crypto investors, aligning them with existing requirements for other financial instruments like stocks and bonds. Previously, investors had to rely on costly third-party services for tax calculations, whereas the new regulations ensure accessible documentation in line with congressional directives.

The Treasury and IRS conducted extensive public hearings and reviewed over 44,000 comments before finalizing the rules. According to Reuters, modifications include reduced burdens on brokers, phased implementation, and a $10,000 threshold for stablecoin transaction reporting, addressing industry concerns over privacy and the broad scope of broker definitions.