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Coinbase Urges U.S. Lawmakers to Reform Crypto Tax Rules

Coinbase Chief Product Officer Faryar Shirzad has called on U.S. lawmakers to update cryptocurrency tax regulations, arguing that the current classification of crypto assets as "property" is outdated. This classification, based on 20th-century tax frameworks, imposes tax obligations on users for routine transactions like paying gas fees or using stablecoins, which hinders broader crypto adoption. Coinbase reports a 34% rise in customer service inquiries about tax reporting compared to last year. For the 2025 tax year, millions of Form 1099-DA forms will be issued, many for transactions under $600, with some below $1. Additionally, over 63% of users lack accurate cost basis records due to frequent asset transfers. Coinbase suggests a "de minimis exemption" to exclude small-value transactions from reporting requirements.