Coinbase Executive to Testify as Senate Finance Committee Tackles Crypto Taxation

In a landmark development for cryptocurrency regulation, the U.S. Senate Finance Committee is set to convene next week to address the complex issue of digital asset taxation. The hearing, scheduled for early October 2025 and led by Chair Mike Crapo, represents a significant step toward establishing clearer regulatory frameworks for the crypto industry. This session follows the White House's July recommendations on cryptocurrency taxation and brings together key industry stakeholders, including Lawrence Zlatkin from Coinbase, who will provide crucial insights from one of the world's largest cryptocurrency exchanges. The participation of Coinbase, alongside representatives from Coin Center and the American Institute of CPAs, underscores the growing recognition of digital assets within traditional financial systems and highlights the increasing collaboration between regulatory bodies and industry leaders. This hearing comes at a critical juncture as cryptocurrency adoption continues to expand globally, with tax implications becoming increasingly important for both individual investors and institutional participants. The testimony from Coinbase's representative is particularly significant given the exchange's position as a gateway for millions of users into the cryptocurrency ecosystem and its ongoing efforts to promote regulatory compliance and transparency. The outcome of these discussions could shape tax policy for digital assets for years to come, potentially influencing how cryptocurrencies are classified, reported, and regulated across various jurisdictions. Market participants are closely watching these developments, as clearer tax guidance could remove significant uncertainty and potentially accelerate institutional adoption of digital assets. The hearing also reflects the broader trend of governments worldwide grappling with how to effectively regulate and tax emerging digital asset classes while balancing innovation with investor protection and revenue collection.

Senate Finance Committee to Address Crypto Taxation Next Week

The U.S. Senate Finance Committee will convene next week to examine the taxation of digital assets, marking a pivotal moment for regulatory clarity in the crypto space. Chair Mike Crapo will lead the session, which follows the White House's July recommendations on crypto taxation. Key witnesses include Lawrence Zlatkin of Coinbase and Jason Somensatto of Coin Center, alongside Annette Nellen from the American Institute of CPAs.

The hearing aims to address critical gaps in tax policy, particularly around stablecoin payments and capital gains reporting. Current IRS guidance treats cryptocurrencies as property, triggering taxable events for every transaction—a framework many argue stifles innovation. The discussion could signal whether lawmakers will align with industry calls for simpler, more pragmatic rules.

Coinbase's XRP Holdings Drop to Zero as Institutional Demand Surges

Coinbase's cold wallets now show zero XRP holdings, a stark decline from nearly 970 million tokens worth $2.8 billion in June 2025. The outflow aligns with growing institutional appetite, as asset managers position themselves ahead of potential XRP ETF approvals.

Data reveals a three-month drawdown pattern, with funds migrating first to hot wallets, then to opaque OTC desks and private custody solutions. Only 32 million XRP remained across two public addresses by late September—a 97% reduction from peak reserves.

Market observers note parallels to pre-Bitcoin ETF accumulation cycles. Firms like Franklin Templeton and Grayscale typically secure underlying assets months before fund launches. This strategic hoarding suggests confidence in regulatory progress despite XRP's contested legal history.

Coinbase and Cloudflare Launch x402 Foundation to Pioneer AI Payment Standard

Coinbase and Cloudflare have joined forces to establish the x402 Foundation, unveiled on September 23, with ambitions to set a universal protocol for machine-driven transactions. The initiative repurposes the HTTP '402 Payment Required' status code to embed payments directly into web interactions, targeting AI agents, businesses, and applications.

Legacy systems, designed for human users, falter in machine-to-machine environments. x402 bridges this gap, enabling seamless micropayments for AI services, content monetization, and decentralized storage. Cloudflare's infrastructure will support deferred payments, starting with its pay-per-crawl beta.

The foundation prioritizes an open, neutral standard—a tacit challenge to traditional finance's rigidity. As AI proliferates, x402 could become the backbone of an autonomous economy, where machines transact as fluidly as humans.

Stablecoin Startup RedotPay Hits Unicorn Status With $47M Raise

Hong Kong-based payments fintech RedotPay has secured $47 million in strategic funding, catapulting its valuation past $1 billion. Coinbase Ventures joins Galaxy Ventures and Vertex Ventures as backers in a round that underscores growing institutional interest in blockchain-powered payment solutions.

The 2023-founded company processes $10 billion annually through stablecoin cards and multicurrency wallets, serving over 5 million users across 100 markets. Its Global Payout feature—enabling stablecoin transfers directly to bank accounts—has gained particular traction in Latin America's emerging economies.

CEO Michael Gao confirms the fresh capital will accelerate compliance efforts and ecosystem integrations. The milestone comes as global regulators increasingly scrutinize stablecoin issuers, with jurisdictions worldwide implementing new frameworks for digital asset payments.