Overview

• Coinbase tax executive Lawrence Zlatkin told senators the IRS is likely not prepared to absorb the flood of brokerage reporting data from exchanges.
• Key policy gaps persist, including whether to adopt a de minimis exemption for small purchases, when to tax staking rewards, and how to treat stablecoins.
• Senator Cynthia Lummis has proposed a $300 de minimis threshold for routine transactions, but its legislative prospects are uncertain.
• Concerns over IRS capacity grew with reports of workforce cuts and turnover in its crypto office, including the departure of lead official Trish Turner.
• Initial IRS guidance was welcomed by companies such as Michael Saylor’s Strategy and MARA for potentially limiting CAMT exposure on unrealized crypto gains, though it remains tentative rather than final.