Coinbase Champions Modern Crypto Tax Reform

In a significant push for regulatory clarity, Coinbase is leading a campaign to overhaul what it deems outdated U.S. cryptocurrency tax laws. The exchange contends that the current framework, which treats digital assets as property under tax codes designed for traditional finance, is fundamentally misaligned with the nature of crypto transactions and stifles innovation. This advocacy comes amid growing user concerns over the complexity and impracticality of compliance. Faryar Shirzad, Coinbase's Chief Policy Officer, has been vocal in highlighting these challenges, arguing that applying legacy rules to everyday crypto activities—from small purchases to decentralized finance (DeFi) interactions—creates an undue burden for consumers and hinders broader adoption. The call for reform underscores a pivotal moment as the industry seeks to bridge the gap between rapid technological advancement and existing financial regulations, with Coinbase positioning itself at the forefront of this critical policy debate.

Coinbase Advocates for Crypto Tax Reform Amid Rising User Concerns

Coinbase is intensifying its campaign for updated cryptocurrency tax regulations in the U.S., labeling current laws as archaic and incompatible with digital asset innovation. The exchange argues that treating crypto as mere "property" under tax codes designed for traditional finance creates unnecessary complexity for everyday transactions.

Faryar Shirzad, Coinbase's Chief Policy Officer, highlights the impracticality of applying 20th-century tax frameworks to blockchain technology. "Paying gas fees or using stablecoins shouldn't trigger burdensome reporting requirements," he notes, pointing to a 34% surge in customer tax-related inquiries this year. The compliance headache grows as crypto moves fluidly across wallets and platforms—a feature fundamental to its utility.

Institutional Investors Diversify Crypto Portfolios with XRP Gaining Traction: Coinbase Survey

Institutional crypto portfolios are expanding beyond Bitcoin and Ethereum, with 25% of surveyed firms planning to add XRP to their allocations by 2026. The Coinbase and EY-Parthenon study reveals a broader shift into altcoins, as the share of institutions holding non-BTC/non-ETH assets rose from 51% to 56%.

The January 2026 survey of 351 global institutional decision-makers—96% representing firms with over $1 billion in AUM—shows 73% intend to increase digital asset exposure this year. Nearly three-quarters anticipate crypto price appreciation in the coming 12 months.

While Bitcoin (94% current allocation) and Ethereum (86% to 90%) remain dominant, altcoins like Solana (36% to 38%), Chainlink (20% to 26%), and XRP (18% to 25%) show accelerating institutional adoption. The data signals a maturing market where diversified crypto strategies are becoming mainstream.