The Internal Revenue Service has proposed a rule that would require centralized crypto exchanges and brokers to deliver tax documents electronically, ending the obligation to provide paper Form 1099-DA copies on request. The regulation, set for publication in the Federal Register, would also allow brokers to terminate relationships with clients who refuse electronic delivery and would prevent users from later revoking consent to receive forms electronically.
Under existing IRS broker-reporting rules, platforms that act as brokers must report gross proceeds from each crypto transaction and provide customers with a Form 1099-DA summarizing activity for the year. For the 2025 tax year, the IRS is not requiring exchanges to track cost basis (the purchase price of assets) for users; cost-basis tracking remains the investor’s responsibility. Broker filings must include identifying customer information such as name and tax identification number (TIN) along with other relevant transaction details.
The change to mandatory electronic delivery is likely to affect a large share of U.S. crypto holders. The National Cryptocurrency Association estimates roughly one in five Americans—about 55 million people—own digital assets. In the NCA’s 2025 survey of 54,000 respondents, 10% cited crypto taxes as a barrier to adoption, more than one-third said they wanted more education on tax implications, and 39% specifically requested clearer information about crypto taxes.
The proposal arrives against a backdrop of ongoing debate over how tax and reporting rules should apply to decentralized finance (DeFi). In December 2024 the IRS issued guidance classifying certain front-end services—including some decentralized exchanges and DeFi platforms—as brokers, which would have imposed KYC and sales-proceeds reporting obligations. That DeFi broker rule was repealed by a congressional resolution signed by President Trump in April 2025, a move welcomed by many in the industry. Nevertheless, some industry participants warn that ambiguous language in the stalled CLARITY market-structure bill could reintroduce KYC reporting requirements for DeFi platforms and constrain activity in the sector.
Industry groups continue to push policy alternatives: for example, the Blockchain Association has proposed tax-related reforms to Congress. Observers say that clarity on delivery methods, reporting scopes, and responsibilities for cost-basis tracking will be important for exchanges, users, and decentralized platforms as regulators refine guidance.
This article reflects reporting on the IRS proposal and related policy developments. Readers are encouraged to consult the Federal Register notice and official IRS guidance for the full regulatory text and to verify details independently.