Coinbase's policy chief calls for reform of crypto tax rules, saying the current system is outdated.

Coinbase Chief Policy Officer Faryar Shirzad has called on U.S. lawmakers to reform cryptocurrency tax rules, arguing that the current system, which treats crypto assets as "property," is no longer adequate for the industry's development. He pointed out that under current rules, even paying gas fees or using stablecoins for everyday transactions can trigger tax obligations, requiring users to calculate cost bases and track profits and losses, increasing compliance burdens. Coinbase data shows a 34% year-over-year increase in tax-related customer service inquiries, and millions of 1099-DA forms are expected to be issued by 2025, many involving small transactions. Shirzad also stated that over 63% of users have a cost base recording gap, suggesting a minimum exemption for small transactions to reduce compliance complexity, and warned that failure to adjust the rules could impact U.S. competitiveness in the crypto space. (Cryptopolitan)