Broker Definition

Definition ∞ A broker acts as an intermediary, executing trade orders on behalf of clients in financial markets. In the digital asset space, this entity facilitates the buying and selling of cryptocurrencies, often providing access to various exchanges. Brokers charge commissions or fees for their services, connecting buyers and sellers without taking principal positions themselves. Their role involves matching orders and ensuring transactions proceed smoothly for their clientele.
Context ∞ The regulatory status of crypto brokers remains a significant area of discussion across jurisdictions, impacting how these entities operate and are licensed. Debates persist regarding whether certain crypto broker activities fall under existing securities or commodities frameworks. Anticipated future clarity in legal standards will likely reshape operational requirements and compliance obligations for digital asset brokers.

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→Tax Compliance Burden

→Information Reporting

→Transaction Data

U.S. Treasury Finalizes Digital Asset Broker Tax Reporting Rule

The final IRS broker reporting rule mandates a systemic overhaul of data collection and Form 1099 issuance for all digital asset intermediaries by 2026.

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→Broker Definition

→IRS Guidance

→US Policy Shift

Congress Nullifies IRS Crypto Broker Rule Blocking New DeFi Reporting Mandates

The Congressional Review Act nullification of the expanded broker rule permanently removes non-custodial entities from immediate, onerous 1099-B tax reporting obligations.

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→Financial Crime

→DeFi

→Financial Compliance Systems

Treasury and IRS Finalize Digital Asset Broker Tax Reporting Regulations

Finalized IRS rules mandate digital asset brokers, including DeFi front-ends, must report gross sale proceeds on Form 1099, fundamentally altering operational compliance.

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→Digital Asset Taxation

→Crypto Tax

→Tax Regulation

US Treasury, IRS Finalize Digital Asset Broker Tax Reporting Rules

New IRS regulations mandate DeFi brokers to implement securities-like information reporting, significantly enhancing transparency and compliance obligations.

→Compliance Frameworks

→Broker Definition

→Digital Asset Taxation

Treasury and IRS Redefine Digital Asset Brokers for Tax Reporting

New IRS regulations expand the "broker" definition to include DeFi front-end service providers, mandating Form 1099 reporting for digital asset transactions to enhance tax compliance.