Coinbase's Chief Public Officer (CPO) has called on U.S. lawmakers to reform crypto tax rules, arguing that current laws are outdated.

PANews reported on March 27th, citing Cryptopolitan, that Coinbase Chief Policy Officer Faryar Shirzad is urging US lawmakers to reform cryptocurrency tax rules, arguing that current laws are outdated.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 a cost basis for reporting gaps, forcing taxpayers to either overpay taxes or manually verify transactions. He suggests establishing a minimum exemption for small transactions to eliminate the burden of reporting small payments. Without adjustments to tax rules, this could push users and innovation overseas, impacting U.S. competitiveness in the crypto space.