Coinbase Chief Policy Officer Faryar Shirzad is urging lawmakers in the United States to reform crypto tax regulations, calling the current framework outdated.
📊 Core issue:
Crypto is treated as “property”, meaning:
Paying gas fees → taxable
Using stablecoins → taxable
Even small transactions require gain/loss tracking
Coinbase reports a 34% YoY increase in tax-related support requests, with millions of 1099-DA forms expected.
⚠️ User impact:
Over 63% of users lack proper cost basis records, leading to:
Overpaying taxes
Reporting errors
Heavy compliance burden
🔥 Proposed solution:
Coinbase suggests introducing a minimum exemption threshold for small transactions to ease the burden on retail users.