Coinbase: "Sweeping overhaul of crypto tax rules is urgent…de minimis exemption for small payments needed"

Coinbase, the largest crypto exchange in the United States, said the current tax code fails to reflect the technical characteristics of digital assets and is imposing excessive costs on investors and industry innovation, calling for a comprehensive tax overhaul.

On the 26th (local time), Coinbase Chief Policy Officer (CPO) Faryar Shirzard said in a post on X, "The current U.S. tax code is built for a 20th-century monetary system," making the remarks.

The core problem Shirzard highlights is the current approach that classifies digital assets solely as property. As a result, he said, every transaction—such as payments using stablecoins or paying network gas fees—technically becomes taxable. Shirzard noted that "because of the ease of transferring digital assets, it is difficult to calculate cost basis," adding that "ultimately, taxpayers either overpay taxes or face complex issues that exchanges cannot solve."

In practice, tax-related administrative burdens are rising sharply. According to Coinbase, customer inquiries related to tax reporting received this year have increased 34% from the same period last year. Shirzard argued that "just as Congress previously eased '1099-K' reporting thresholds, introducing a reasonable de minimis exemption for small payments for digital assets would immediately alleviate this administrative burden."

He added that "the current tax code is structured to punish Americans who use technology," and that "a tax framework optimized for digital assets must be put in place promptly so that capital, jobs and innovation can remain in the United States."