The US Treasury Department has finalized comprehensive crypto tax reporting requirements that will take effect January 1, 2027, requiring all exchanges and DeFi platforms to issue 1099 forms for user transactions.

Key Requirements

Centralized exchanges must report all trades, staking rewards, and airdrops. DeFi front-ends must report transactions exceeding $600 annually. Wallet-to-wallet transfers remain exempt.

Industry Reaction

The crypto industry has largely accepted the rules as reasonable, though DeFi protocols argue the front-end reporting requirement is technically challenging to implement.