Upcoming U.S. Crypto Tax Policies: What Investors Need to Know

Crypto taxation has become a hot topic in the United States. The Trump administration is currently preparing a series of new tax policies that will reshape how reporting, payment, and exemptions apply to digital assets like Bitcoin, Ethereum, and other cryptocurrencies.

These policies aim to create a clearer, more transparent, and more investor-friendly tax system for the crypto industry. In this article, we’ll break down the most important updates—from repealing old rules to introducing tax exemptions for small transactions.

1. Repeal of the DeFi Reporting Rule

One of the administration’s first moves was to repeal the Decentralized Finance (DeFi) reporting rule. This rule, enacted under the previous administration, would have required DeFi platforms to report detailed user transaction data similar to traditional brokers.

The repeal has been widely welcomed by the industry, as it reduces compliance burdens and helps preserve user privacy.

2. New Broker Reporting Requirements

Starting in the 2025 tax year, crypto brokers will be required to report sales proceeds of digital assets to the Internal Revenue Service (IRS).

While this will make it easier for taxpayers to file accurate returns, it also increases government oversight of the crypto market.

3. Cost Basis Tracking Per Wallet

Beginning January 1, 2025, the IRS will switch to cost basis tracking on a per-wallet basis, replacing the older aggregated system.

This change should improve accuracy in tax reporting. To ease the transition, safe harbor provisions will apply to assets acquired before 2025.

4. Proposed “De Minimis Exemption” for Small Transactions

The administration is exploring a tax exemption for small everyday crypto transactions, similar to the de minimis rule for foreign currencies.

If approved, this would make it easier to use cryptocurrencies like Bitcoin for day-to-day purchases without facing unnecessary tax burdens.

5. Aligning with Global Tax Reporting Standards

The U.S. is developing a new reporting framework through Form 1099-DA, moving toward compatibility with the international Crypto-Asset Reporting Framework (CARF).

This would facilitate cross-border tax data sharing and help combat global tax evasion.

6. Recommendations from the Official Government Report

In July 2025, the Working Group on Digital Asset Markets released a 160-page report recommending rapid reforms to crypto tax policies, including:

Regulatory clarity for all industry participants.
Greater transparency in transaction reporting.
Support for blockchain innovation while maintaining investor protections.

The crypto tax policies currently being drafted in the United States signal a major shift in how the government approaches digital assets. From repealing outdated rules to proposing tax-free small transactions, these developments could significantly impact both crypto investors and everyday users.

For investors, understanding these policy changes will be critical in planning future investment strategies and ensuring tax compliance.