New regulations finalized by the IRS and U.S. Department of Treasury will require crypto platforms to report transactions to the IRS starting in 2026, in accordance with the Infrastructure Investment and Jobs Act passed in 2021. Gains from selling digital assets have always been taxable, but the lack of standardization in reporting has led to the implementation of a standard 1099 form for crypto platforms to use from 2026 onwards. The IRS aims to curb tax evasion by ensuring digital assets are not used to hide taxable income. However, decentralized platforms that do not hold assets themselves will be exempt from these regulations, a victory attributed to industry lobbying efforts. The government plans to address these exempt decentralized brokers in a separate set of regulations, acknowledging the influential voice of the crypto industry.