The Crypto Outlook for 2026: Critical Tax Updates and Trends

For most US retail investors, the most significant change to crypto taxes in 2026 is the new Form 1099-DA. Here’s what the typical crypto user can expect:

• If you used a US broker (like Coinbase) in 2025, you can anticipate receiving Form 1099-DA for 2025 sales reporting gross proceeds.

• Cost-basis reporting on the 1099-DA will begin with assets you acquire in 2026 and after, on 2027 1099-DA forms.

• Keep your own transaction history, including fees. Do not rely on a broker to provide an accurate form that explains your entire transaction history, especially if you use multiple platforms and/or DeFi. Don’t expect Form 1099-DA for your DeFi transactions. Do expect it from centralized exchanges like Coinbase or Binance.us.

• You are always responsible for your own accurate tax reporting. When in doubt, consult one of our

  crypto tax experts.

Selling crypto for cash, swapping one coin for another, and spending crypto are capital transactions subject to capital gains taxes. Crypto staking, mining, airdrops, wages, and rewards are considered ordinary income at fair market value on the date you control the assets.

Report disposals on Form 8949 and Schedule D. Report crypto income on Schedule 1 or Schedule C if you received it as part of a trade or business.

Here’s an at-a-glance breakdown of the key crypto tax forms you need to know.

Here are some key crypto trends to watch in 2026.

Stablecoin rails bring stability. Better on- and off-ramps, along with compliant stablecoin models, will make settlement faster and more reliable.

Users return to security basics. More capital invites bad actors and even more sophisticated exploits. Use hardware wallets, keep your keys offline and secure, and always triple-check contract addresses and URLs before interacting.

Midterm elections mean more volatility. The US midterm elections in November will likely mean increased volatility. Which direction is impossible to say, but smart traders will be closely anticipating, and watching. the results.

Bitcoin continues to drive the market. Bitcoin has always been the primary driver of the crypto market, and we don’t expect this to change in 2026. Every crypto user should have a thesis about future Bitcoin price, whether investing in meme coins or blue chips like Ethereum. Coins can and do sometimes break away from Bitcoin’s price action, but “digital gold” always drives the broader trade.

The TradFi AI trade affects crypto. As the so-called “AI trade” plays out in TradFi, look for crypto to follow the NASDAQ and/or break away. If the NASDAQ suffers a major drawdown in 2026, history suggests the same, similar, or worse will happen to crypto. While not a rule, this is something to keep an eye on. Conversely, if the NASDAQ continues to surge to ATHs, this should be bullish for the broader crypto market.