WASHINGTON — The U.S. House of Representatives introduced legislation requiring crypto exchanges and brokers to report detailed transaction data to the Internal Revenue Service, targeting trades exceeding $10,000.
The bill mandates brokers report gross proceeds from digital asset sales, transaction identifiers and counterparty wallet addresses where applicable. The $10,000 threshold mirrors existing cash reporting rules and aims to close compliance gaps, but the granular data collection has triggered privacy concerns among holders.
Investors are already moving. On-chain data shows non-custodial wallet balances rising steadily—addresses holding over one Bitcoin now total 1.05 million, up two percent this quarter. That reflects a shift toward self-custody and decentralized finance protocols over centralized exchange wallets, a direct response to regulatory pressure.
Bitcoin is holding at $77,950 and Ethereum at $2,515, showing limited immediate price reaction. Market sentiment remains strong: the Crypto Fear & Greed Index sits at 69, indicating greed among investors.
The timing follows the SEC's approval of spot Bitcoin ETFs in January 2024. Institutional inflows into these products totaled $1.2 billion last month, signaling mainstream adoption momentum even as Congress tightens reporting rules.
The bill now moves to committee review. Industry groups and digital asset advocates will testify on implementation details. A House vote would follow committee approval, then Senate consideration before reaching President Trump for signature.
