New IRS Tax Rule Forces DeFi Brokers to Report User Info

So, the IRS has officially wrapped up a rule that’s stirring the pot in the crypto world. Basically, they’re saying that "DeFi brokers" need to play by the same rules as traditional brokers dealing with securities. This has sparked a lot of backlash from folks in the crypto space who argue that crypto is a whole different ballgame compared to regular assets. The IRS has announced that certain brokers in decentralized finance now have to report their users' earnings from digital asset sales. Under these new rules, these DeFi brokers will be treated like traditional brokers and will need to gather info about trades from their users and send them a Form 1099. This form is what’s used to report various types of income outside of your regular paycheck. Aviva Aron-Dine, who’s the acting assistant secretary for tax policy, mentioned that this move will ensure everyone follows the same rules and gets the information they need to file taxes correctly. She believes aligning tax reporting for digital assets with other assets will make it simpler and cheaper for those who are compliant, plus it could help tackle the tax gap.