Interest-style products on centralized exchanges (Coinbase, Kraken, Nexo, Binance) that pay yield for lending your crypto to the platform or its borrowers.
Yield is ordinary income when credited, and US exchanges report it on Form 1099-MISC above $600. The coins remain yours for basis purposes unless the program is structured as a loan of the coins, in which case the platform's failure (Celsius, BlockFi) turns your holding into a claim. Read the terms: custody and lending are different risks with different tax outcomes if the platform fails.
US exchanges issue Form 1099-MISC for $600 or more of rewards. Below that, or from foreign platforms, the income is still reportable from your records.
Source: IRC 61; Form 1099-MISC instructions
Last reviewed September 18, 2026. Tax rules change; confirm current law before acting.
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