📌 [CryptoCFOs] Important Highlights of the Final IRS Regulation for Digital Asset Brokers

📝 Reporting Requirements for Digital Asset Brokers: Custodial brokers must report digital asset disposition to sellers and the U.S. Internal Revenue Service (IRS) using Form 1099-DA.

📜 Definition and Inclusion of Non-Custodial Actors: The IRS intends to issue further regulations for non-custodial actors, such as decentralized finance (DeFi) platforms.

💵 Stablecoin Reporting Requirements: Qualifying stablecoin exchanges with an annual turnover of less than $10,000 are exempt from reporting, but exchanges above that amount must be reported.

🎨 Non-Fungible Tokens (NFTs): NFTs are treated as digital assets, but specified NFTs with annual sales of less than $600 are exempt from reporting.

🔄 Excluded Transactions: Transactions such as wrapping/unwrapping, liquidity provision, staking, and certain types of lending and short selling are excluded from reporting.

📈 Multiple Lots and Transaction Costs: Regulations generally apply FIFO (first-in-first-out) to identify lots that have been sold unless specifically identified. Transaction costs are included in the basis or deducted from the realized amount.