Treasury Aims to Snag Tax Cheats With Crypto Broker Proposal (1)

US-based cryptocurrency exchanges, such as Coinbase Global Inc. and Kraken, would have to disclose detailed information on their clients’ transactions to the IRS starting in 2026 under a new Treasury proposal.

The proposed regulations from the Treasury Department and Internal Revenue Service offers clarity on reporting rules enacted in 2021 to curb crypto-related tax evasion by offering more transparency into customer trades. At the time, it was estimated the measure would raise up to $28 billion in additional revenue over 10 years, according to the Joint Committee on Taxation.

The IRS has pointed to unpaid digital-asset taxes as a contributor ...