Coinbase calls for reform of U.S. crypto exchange regulations, urging lawmakers to modernize outdated tax frameworks. The company argues that classifying crypto as property imposes unnecessary capital gains tax burdens on users, particularly for small transactions. Data reveals a 34% increase in tax-related inquiries, with over 63% of users lacking complete cost basis records. Coinbase recommends a de minimis exemption to simplify reporting for low-value trades.

According to CryptoNews, Coinbase Chief Product Officer Faryar Shirzad publicly urged U.S. lawmakers to revise current cryptocurrency tax regulations, noting that classifying crypto assets as "property" stems from 20th-century tax frameworks, resulting in tax obligations for users even when paying gas fees or using stablecoins for everyday transactions—significantly hindering the widespread adoption of cryptocurrency. Coinbase data shows a 34% increase in customer service inquiries related to tax reporting compared to the same period last year. For the 2025 tax year, millions of Form 1099-DA forms will be generated, many of which correspond to transactions under $600, with some below $1. Additionally, over 63% of users lack accurate cost basis records, primarily due to frequent transfers of assets across multiple wallets and exchanges. Coinbase recommends adopting a "de minimis exemption" mechanism, similar to existing tax provisions, to exempt small-value transactions from reporting requirements.Source:Show originalDisclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.