Key takeaways
- Rabby Wallet does not report directly to the IRS.
- The IRS can still trace your transactions because all activity on public blockchains is visible.
Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Rabby’s tax reporting policies within United States. We’ll also break down a simple way to report your Rabby taxes in minutes.
What is Rabby Wallet?
Rabby Wallet is a self-custodial, Web3 crypto wallet developed by DeBank. It primarily supports Ethereum and EVM-compatible chains and is known for its industry-leading security features.
Because it is decentralized, Rabby does not collect Know Your Customer (KYC) information or issue tax forms.
Does Rabby Wallet report to the IRS?
Rabby Wallet does not share your data with the IRS or issue tax forms.
That being said, your transactions still traceable:
- Blockchain transparency: All transactions conducted via Rabby are recorded on public blockchains. Tax authorities can use this to trace transactions and identify ‘anonymous’ wallets.
- Exchange reporting: Starting in 2026, exchanges like Coinbase will be required to report to the IRS via Form 1099-DA. If you transferred crypto to/from a centralized exchange, it’s likely your wallet can be identified.
If I use Rabby Wallet in the US, do I owe taxes?
In the United States, cryptocurrency is subject to capital gains and income tax.
- Capital gains: Selling, swapping, or otherwise disposing of crypto counts as a taxable event. You incur a capital gain/loss depending on how the price of your crypto changed since you originally received it.
- Ordinary income: Any rewards, airdrops, or yield from DeFi protocols must be reported as income based on fair market value upon receipt.
There’s no tax for transferring crypto between wallets (e.g. Coinbase to Rabby).
Does Rabby Wallet have KYC?
Rabby Wallet does not require KYC to use.
Is Rabby Wallet legal in the US?
Yes. Rabby is legal to use in the United States.
You are required to report your capital gains and income to the IRS.
How do I avoid Rabby Wallet taxes in the US?
While you can’t avoid taxes completely, you can take steps to legally reduce your tax bill:
- Tax-loss harvesting: Selling assets at a loss can lower your taxable income. Capital losses can offset an unlimited amount of capital gains and up to $3,000 of ordinary income. Additional losses can be rolled forward to future tax years.
- Use crypto tax software: Crypto tax software like CoinLedger can import your Rabby trades directly from the blockchain and help you spot your biggest tax-saving opportunities.
Looking for a simple way to report your Rabby taxes? With CoinLedger, you can import your Rabby transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Rabby and dozens of other wallets, blockchains, and cryptocurrency exchanges to automate the entire crypto tax reporting process.
You can get started with a free preview report today.
How CoinLedger can help
Calculating your gains and losses from Rabby and other platforms can be overwhelming. CoinLedger automates the process: you can import your transaction history, track capital gains and income in one place, and generate complete crypto tax reports in minutes.
Get started with a free CoinLedger account today.
