Coinbase Policy Chief Calls for Reform of Cryptocurrency Tax Rules, Claims Current System is Outdated

On March 27, Coinbase Chief Policy Officer Faryar Shirzad urged U.S. lawmakers to reform cryptocurrency tax rules, stating that the current system, which treats crypto assets as “property,” is struggling to keep up with industry developments. He pointed out that under the current rules, even paying gas fees or using stablecoins for everyday transactions could trigger tax liabilities, requiring users to calculate cost basis and track gains and losses, thus increasing compliance burdens. Coinbase data shows that inquiries related to tax issues have risen by 34% year-on-year, and millions of 1099-DA forms are expected to be issued in 2025, many of which will involve small transactions. Shirzad also noted that over 63% of users have gaps in their cost basis records and suggested establishing a minimum exemption threshold for small transactions to reduce compliance complexity, warning that failure to adjust the rules could affect the U.S.'s competitiveness in the cryptocurrency sector. (Cryptopolitan)