Coinbase CPO calls on US lawmakers to reform crypto tax rules, saying current laws are outdated.

According to Mars Finance, market sources indicate that Coinbase Chief Policy Officer Faryar Shirzad has called on US lawmakers to reform cryptocurrency tax rules, stating that current laws are outdated. Treating crypto assets as "property" means that even paying gas fees or using stablecoins for everyday transactions triggers tax obligations, requiring users to calculate cost bases, track profits and losses, and report, creating a compliance burden. Coinbase data shows that tax-related customer service inquiries have increased by 34% compared to the same period last year, and millions of 1099-DA forms are expected to be issued by 2025, many involving very small transactions. Shirzad points out that over 63% of users have gaps in their cost base records, forcing taxpayers to either overpay taxes or be forced to manually verify transactions. He suggests establishing a minimum exemption for small transactions to eliminate the burden of reporting small payments. If tax rules are not adjusted, it could push users and innovation overseas, impacting the US's competitiveness in the crypto space.