The U.S. Treasury Department has proposed updated tax rules aiming to streamline the crypto tax landscape, as reported by the Wall Street Journal.

The proposed rules, when fully implemented, will obligate crypto businesses to interact with the IRS in a similar fashion to traditional brokers handling stock and mutual fund portfolios. From 2026, these platforms will be required to submit annual reports on Form 1099s to the IRS and taxpayers, indicating the gross proceeds from transactions.

The proposed regulations extend to other digital assets, such as nonfungible tokens (NFTs) and decentralized finance (DeFi) platforms. This inclusion of DeFi platforms in the tax regulations has drawn criticism within the crypto industry, with the head of the DeFi Education Fund criticizing …