The rules
Taxes, insurance and what regulators say.
The parts people usually learn too late, straight from the agencies. Rules change, so every card links to the source.
The rules
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The rules
The IRS treats crypto as property
For U.S. federal tax purposes, digital assets like bitcoin are treated as property, not currency. The IRS defines a digital asset as any digital representation of value recorded on a cryptographically secured distributed ledger (blockchain) or similar technology.
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The rules
The digital asset question on your tax return
Form 1040 and several other returns ask whether, during the tax year, you received a digital asset as a reward, award, or payment, or sold, exchanged, or otherwise disposed of one. The IRS says you can answer No if you only bought digital assets with real currency or only held them in a wallet or account.
Source: Internal Revenue Service, Digital assets; and Determine how to answer the digital asset question
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The rules
Form 1099-DA starts with 2025 sales
Brokers must report gross proceeds on Form 1099-DA for digital asset transactions on or after January 1, 2025. For 2025, the filing requirements generally apply to U.S. brokers.
Source: Internal Revenue Service, Digital assets; and Understanding your Form 1099-DA
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The rules
Cost basis reporting begins for certain 2026 sales
Brokers must also report basis (generally what you paid) on certain digital asset transactions on or after January 1, 2026.
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The rules
You still report even without a 1099-DA
Whether or not you get a Form 1099-DA, you must report all income, gains, and losses from digital asset transactions on your federal tax return. People who use foreign brokers may not get a 1099-DA but still have to report taxable transactions.
Source: Internal Revenue Service, Understanding your Form 1099-DA
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The rules
SEC approved spot bitcoin exchange-traded products
On January 10, 2024, the SEC approved the listing and trading of a number of spot bitcoin exchange-traded products. The SEC Chair's statement said the agency didn't approve or endorse bitcoin itself and that investors should stay cautious about its many risks.
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The rules
SEC investor alert on crypto risks
The SEC's investor education office warns that crypto asset securities can be exceptionally volatile and speculative, and that the platforms where people trade them may lack important investor protections. It also notes that accounts with crypto companies don't get the SIPC, FDIC, or NCUA protections that apply to registered brokerages, banks, and credit unions.
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The rules
Crypto isn't covered by FDIC insurance
FDIC deposit insurance covers things like checking accounts, savings accounts, and CDs at insured banks. It doesn't cover crypto assets, and it doesn't protect you if a crypto exchange, custodian, broker, or wallet provider fails or goes bankrupt.
What this page isn't
It isn't tax or legal advice. If you've bought, sold, traded or been paid in crypto, a tax professional can tell you what applies to your situation.