Coinbase has called on the U.S. Congress to reform the cryptocurrency tax regime, arguing that regulatory uncertainty is hindering industry growth. The company contends that the current framework was designed around an earlier era of finance and fails to reflect the unique characteristics of digital assets. Specifically, Coinbase argues that categorizing crypto merely as property can subject even small-dollar transactions to taxation, complicating everyday use. Faryar Shirzad, Coinbase’s Chief Policy Officer, said U.S. tax law was built for 20th-century finance, while crypto operates in a fundamentally different way.
The company notes that tax inquiries rose sharply, and new reporting duties will increase administrative burdens, with millions of 1099-DA forms expected for the 2025 tax year, many tied to sub-$600 transactions. Coinbase warned that this misalignment could erode the industry’s competitiveness and push users and firms overseas, threatening America’s position in the digital asset market.
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