Svmuu News Coinbase Chief Policy Officer Faryar Shirzad has called on U.S. lawmakers to reform cryptocurrency tax rules, stating that the current system treating crypto assets as "property" is struggling to keep pace 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, thereby increasing compliance burdens.
Coinbase data shows that customer service inquiries related to taxes have increased by 34% year-over-year, and it is estimated that millions of 1099-DA forms will be issued in 2025, many involving small transactions. Shirzad also stated that over 63% of users have gaps in their cost basis records. He suggested establishing a minimum exemption threshold for small transactions to reduce compliance complexity and warned that failure to adjust the rules could impact the U.S.'s competitiveness in the crypto field. (Cryptopolitan)