Exactly, the banks don't report that YOU paid money to others on a loan, the bank has it's own reporting requirements, hence you are not liable. Interestingly,

Exactly, the banks don't report that YOU paid money to others on a loan, the bank has it's own reporting requirements, hence you are not liable. Interestingly, financial institutions (which includes exchanges) are currently exempt from the reporting requirements in this law "the only businesses that are exempt from section 6050I are banks and financial institutions." So my take is they haven't figured out how to regulate the institutional aspect, they're simply attempting to monitor person to person transfers as a first pass. And this makes sense given the wash sales and other tricks people are trying to pull via NFTs and the like.