IRS Rule Changes Coming in 2026 Bring Major Reporting Shifts for Bitcoin, Ethereum, and XRP Taxpayers
New Form 1099-DA Requirements, Full Cost-Basis Reporting, and Enhanced Compliance Reshape U.S. Crypto Taxation.
The U.S. Treasury and the Internal Revenue Service (IRS) have enacted significant reforms that will fundamentally change how cryptocurrency activity is reported and taxed in the United States. Beginning in 2026, these new rules will place expanded reporting obligations on exchanges and custodial platforms and introduce full cost-basis reporting for certain digital assets, including Bitcoin (BTC), Ethereum (ETH), and XRP.
These regulatory changes are designed to increase transparency in the cryptocurrency market, reduce errors in tax reporting, and strengthen compliance across the digital asset industry. While partial implementation begins with transactions in the 2025 c...