A recent study reveals that a significant number of cryptocurrency holders in the U.S. have not been reporting their transactions to the IRS. Conducted by Tyler Menzer and his co-authors, the research analyzed IRS data from 2013 to 2021 and found that only 6.5% of crypto holders reported their transactions, despite 12% to 21% of U.S. adults having held cryptocurrency by 2021. The study highlights that crypto investors, often younger and with lower incomes, differ from traditional stock investors in their compliance behaviors. The research, published in a Springer Nature journal, underscores the distinct trading patterns of crypto holders, who are more likely to engage in meme stock trading. As the IRS tightens regulations for the 2026 tax year, including mandatory transaction reporting by exchanges like Coinbase, the compliance landscape for crypto investors is set to change. The IRS's new requirements aim to align crypto regulation with stock market standards, potentially challenging the anti-tax sentiment prevalent in the crypto community.