A crypto exchange CPO urges U.S. lawmakers to reform crypto tax regulations, stating that current laws are outdated.

PANews, March 27 — According to Cryptopolitan, Faryar Shirzad, Chief Policy Officer of an exchange, has called on U.S. lawmakers to reform cryptocurrency tax regulations, stating that current laws are outdated. Treating crypto assets as “property” results in tax obligations even for simple Gas fee payments or using stablecoins in everyday transactions. Users are required to calculate cost basis, track gains and losses, and submit reports, creating a heavy compliance burden. Exchange data show that tax-related customer service inquiries have risen by 34% compared to the same period last year. It is expected that millions of 1099-DA forms will be issued in 2025, many involving very small transactions.

Shirzad pointed out that more than 63% of users have gaps in their cost basis records, leading taxpayers to either overpay taxes or be forced to manually reconcile transactions. He suggested setting a minimum exemption threshold for small transactions to alleviate the burden of reporting minor payments. If tax rules are not adjusted, it could push users and innovation overseas, impacting the U.S.’s competitiveness in the crypto sector.