Coinbase’s Chief Policy Officer Calls for Cryptocurrency Tax Reform, Calling Current System Outdated

BlockBeats News, March 27th, Coinbase's Chief Policy Officer Faryar Shirzad called on U.S. lawmakers to reform cryptocurrency tax rules, stating that the current system of treating crypto assets as "property" is struggling to keep up with industry development. He pointed out that under the current rules, even paying gas fees or using stablecoins for daily transactions could trigger tax obligations, requiring users to calculate cost basis and track gains and losses, thus increasing compliance burdens.

According to Coinbase data, tax-related customer service inquiries have increased by 34% year-on-year, with millions of 1099-DA forms expected to be issued by 2025, many of which involve small-value transactions. Shirzad also stated that over 63% of users have cost basis record gaps and proposed establishing a de minimis exemption for small transactions to reduce compliance complexity. He warned that if the rules are not adjusted, it could affect the U.S.'s competitiveness in the crypto field. (Cryptopolitan)