Form 1099-DA (Digital Asset Proceeds From Broker Transactions) may be required to be mailed to the IRS because of your "Noncovered Security." When the broker stated the asset was "not covered," they are sharing with the IRS that they are reporting the sale price (proceeds), but that they can not guarantee the cost basis.
Even if the cost basis is printed on your form, it wasn't electronically reported to the IRS in a way that they can "match" it automatically.
In addition, If you entered a summary total for your 1099-DA (instead of every individual trade), you are required to mail the IRS a statement that shows the breakdown of those trades.
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