Crypto Firms Brace for New Rules Forcing Broad Reporting to IRS

The Biden administration is poised to specify which cryptocurrency firms will be forced to report reams of customer data to the Internal Revenue Service, said people familiar with the matter.

The Treasury Department is planning to issue preliminary guidance this month clarifying who will be considered a crypto broker under legislation that Congress passed last year, said the people who asked not to be named before a public announcement. The initial move would later be followed by a more formal rule proposal, the people said. Treasury officials declined to comment.

The provision on crypto brokers was included in 2021’s ...