In 2024, the Department of the Treasury (DOT) and the Internal Revenue Service issued final regulations establishing mandatory tax reporting requirements for brokers engaging in certain cryptocurrency (crypto) transactions and exchanges.¹ These new rules, under 26 CFR Parts 1, 31 and 301 (TD 10000), were issued simultaneously with Revenue Procedure 2024-28 and mark a significant step toward integrating digital assets into the existing tax information reporting framework. 

That being said, the regulations have generated considerable uncertainty among tax professionals and organizations regarding the determination and tracking of cost basis for crypto, which brokers will be required to report beginning Jan. 1, 2026.²

We’ll provide: (1) a pri…