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Crypto & taxes in United States

Regulated
Short-term capital gains
Ordinary rates 10–37% (held ≤1 year)
Long-term capital gains
0% / 15% / 20% (held >1 year)
Net Investment Income Tax
+3.8% if MAGI >$200k (single) / $250k (joint)
Reporting
Form 1099-DA mandatory from 2026

Crypto regulation

Crypto-assets are regulated by several agencies: the SEC over tokens deemed securities, the CFTC over digital commodities, and FinCEN for anti-money-laundering. The 2025 GENIUS Act set rules for payment stablecoins, while 2025–2026 saw the CLARITY market-structure bill advance and growing SEC–CFTC harmonization, under a notably more favorable stance from the current administration.

Taxation

The IRS treats crypto as property: every disposal is a taxable event. Gains on assets held one year or less are taxed at ordinary income rates (10–37%), while assets held more than one year qualify for the preferential 0%, 15% or 20% long-term rates based on taxable income.

Useful information

From 2026 exchanges must issue Form 1099-DA, including cost basis for crypto bought on-platform. Keep full transaction records and consider holding beyond 12 months to access the lower long-term rates.

Official sources

Last verified: . For information only, not legal or tax advice: rules change, always check the official source.