Coinbase and policy experts to testify on digital asset tax treatment
The US Senate Finance Committee will hold a hearing next Wednesday to address how digital assets should be taxed, marking another step in Washington’s efforts to create clarity for the crypto industry. The session, chaired by Senator Mike Crapo, will bring together top voices from both industry and policy.
Among those testifying will be Lawrence Zlatkin, Coinbase’s vice president of tax, and Jason Somensatto, policy director at Coin Center. They will be joined by Annette Nellen, chair of the Digital Assets Tax Task Force at the American Institute of Certified Public Accountants, and Andrea S. Kramer, a founding member of ASKramer Law, which specializes in crypto taxation.
Aligned with White House crypto tax roadmap
The hearing comes in the wake of the White House Digital Asset Working Group’s July report, which urged lawmakers to modernize tax rules to reflect the unique characteristics of crypto. The report recommended that Congress:
- Recognize crypto as a distinct asset class.
- Tailor existing tax frameworks for securities and commodities to digital assets.
- Clarify tax treatment of airdrops, mining, staking, and stablecoin payments.
Currently, the IRS treats cryptocurrencies and NFTs as property. This means that every time a holder sells, trades, or even uses crypto for payments, the transaction can trigger a capital gains tax event — a point that has created confusion and inefficiency for both businesses and individuals.
Push to end “double taxation” of miners and stakers
Senator Cynthia Lummis, a long-time advocate for crypto, has been vocal about what she calls “unfair tax treatment” of miners and stakers. She argues they are taxed twice — once when they receive block rewards, and again when they sell those rewards.
“It’s time to stop this unfair tax treatment and ensure America is the world’s Bitcoin and Crypto Superpower,” Lummis stated earlier this year. Although she attempted to include relief for miners in President Trump’s July budget reconciliation bill, the provision was ultimately excluded.
The Finance Committee’s hearing will be closely watched by the crypto industry, which has long sought regulatory clarity and fair tax treatment. The outcome could pave the way for updated IRS guidance or even new legislation tailored to digital assets.
If successful, the reforms could boost innovation, retain talent in the US, and reduce the uncertainty that has hindered mainstream crypto adoption.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.