US Senate to Grill Coinbase Exec on Crypto Tax Rules Next Week — Regulation Incoming?

​The ￰3￱ is preparing to wade deeper into the issue of digital asset taxation, with a high-profile hearing set for next week that will put crypto executives, such as Coinbase VP, policy advocates, and tax lawyers in the hot ￰4￱ Finance Committee, chaired by Senator Mike Crapo, will convene on October 1 for a session titled “Examining the Taxation of Digital Assets.” NEW: The @SenFinance Committee has just announced a hearing next Wednesday, October 1st at 10AM EST on crypto ￰5￱ include: Jason Somensatto, Director of Policy at @coincenter Andrea S. Kramer, Founding Member of ASKramer Law Lawrence Zlatkin, Vice… ￰6￱ — Eleanor Terrett (@EleanorTerrett) September 24, 2025 The session will also feature Coin Center policy director Jason Somensatto, ASK Kramer Law’s Andrea Kramer, and Annette Nellen, who chairs the American Institute of CPAs’ Digital Assets Tax Task Force.

However, Coinbase Vice President of Tax Lawrence Zlatkin will be in the spotlight. Notably, the hearing will be livestreamed from the Dirksen Senate Office ￰7￱ backdrop is a July report from the White House’s Digital Asset Working Group that urged Congress to tailor existing tax rules for securities and commodities to cover digital assets, rather than treating them as an ￰8￱ new legislation, the report pressed the Treasury Department and IRS to clarify grey areas, such as how to tax stablecoin payments and whether small sums from staking, mining, or airdrops should trigger taxable events. ​Senate to Grill Crypto Execs on Tax Rules Amid CAMT Backlash Adding to the pressure, Senators Cynthia Lummis and Bernie Moreno recently urged the Treasury Department to address what they call an “unintended tax burden” on digital asset companies, created by a Biden-era provision in the Inflation Reduction ￰9￱ Lummis and Moreno are urging the US Treasury to tackle an unintended tax burden on digital assets, which could harm American crypto firms. #CryptoTax #Treasury ￰0￱ — ￰10￱ (@cryptonews) May 14, 2025 The corporate alternative minimum tax (CAMT) imposes a 15% minimum levy on adjusted financial statement income, including unrealized gains from digital ￰11￱ warn that this could force companies to pay taxes on paper profits even if they have not sold the ￰12￱ a letter to Treasury Secretary Scott Bessent, the senators argued that the CAMT could harm ￰13￱ by forcing American firms to sell tokens to cover tax liabilities, while foreign rivals face no such ￰14￱ urged Treasury to use its regulatory authority to exempt unrealized crypto gains from the calculation, aligning tax policy with the reality that gains are only realized upon ￰15￱ Lummis has already been vocal about what she calls “double taxation” of miners and stakers , who pay tax when rewards are earned and again when ￰16￱ attempted to incorporate corrective language into President Trump’s budget reconciliation bill earlier this year, but it was not included in the final ￰17￱ stakes are ￰18￱ Biden administration was criticized for dragging its feet on crypto regulation; however, since Trump’s return to office in January, officials have sought to accelerate policy clarity, framing it as a means to boost innovation and retain talent in the ￰19￱ White House has signaled support for de minimis tax exemptions, shielding small, routine crypto transactions from liability — a proposal that will likely be discussed in next week’s ￰20￱ Coinbase and other industry representatives, the session presents a rare opportunity to push back against rules they argue are stifling ￰21￱ lawmakers, it will test whether Washington can finally reconcile tax law with the realities of a fast-growing, increasingly mainstream asset ￰22￱ Faces Intensifying Tax Pressure as Senate Hearing, IRS Surveillance, and State Proposals Converge Coinbase’s testimony comes at a sensitive moment just months after the Supreme Court cleared the way for the IRS to keep probing crypto users’ ￰23￱ June, the ￰24￱ Court declined to hear Harper ￰25￱ , a case challenging the agency’s power to compel Coinbase to share user ￰26￱ denial left intact a lower court ruling that allowed the IRS to collect records on transactions, security settings, and personal correspondence from accounts, such as that of James Harper, who argued that his Fourth Amendment rights were ￰27￱ initially resisted but was ultimately forced to comply with narrowed ￰28￱ case reignited debate over the “third-party doctrine,” which holds that individuals forfeit their privacy rights over records held by service providers.

Coinbase’s chief legal officer, Paul Grewal, also warned that the IRS’s sweeping approach amounted to “unchecked surveillance” extending far beyond ￰29￱ advocates and even Justice Neil Gorsuch have questioned whether decades-old precedents remain relevant in an era of digital ￰30￱ IRS is cracking down on crypto taxes, sending recent warning letters to US investors over possible discrepancies in their digital asset filings. #IRS #CryptoTax ￰1￱ — ￰31￱ (@cryptonews) June 30, 2025 Meanwhile, enforcement pressure is ￰32￱ reported a ninefold increase in IRS-related support requests from users between May and June compared with 2024, reflecting a surge in tax ￰33￱ say the agency is focusing on discrepancies in staking, airdrops, and the reporting of small transactions, the very areas lawmakers may address next ￰34￱ the state level, New York has entered the fray with Assembly Bill A08966 , proposing a 0.2% excise tax on all digital asset transactions, including ￰35￱ York Assembly bill seeks a 0.2% excise tax on crypto and NFT transactions, targeting the digital asset sector for substance abuse prevention funding. #Crypto #Tax ￰2￱ — ￰36￱ (@cryptonews) August 15, 2025 If enacted, the levy, earmarked for school prevention programs, would mark one of the most sweeping attempts to treat crypto as a revenue stream at the state level, potentially complicating compliance for exchanges and DeFi ￰37￱ has long positioned itself as a proponent of clear, workable tax rule s, but it has fiercely opposed what it calls “unprecedented and unlimited tracking” in IRS ￰38￱ the company faces senators in Washington, the industry will be watching closely to see whether policymakers strike a balance between tax compliance, competitiveness, and individual privacy or double down on aggressive enforcement at the expense of innovation. ​