United

2026

DeFi

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<p>A new survey conducted by US-based <a href="https://en.coin-turk.com/analysts-discuss-bitcoin-market-trends-and-future-predictions/" rel="noopener noreferrer nofollow">cryptocurrency</a> exchange <a href="https://en.coin-turk.com/altcoins-yet-to-enter-bull-season-an-analysis-of-the-arb-coins-potential/" rel="noopener noreferrer nofollow">Coinbase</a> and portfolio tracking platform Cointracker reveals that a significant portion of American crypto investors remain unclear about the tax implications of their digital asset transactions. The results highlight persistent knowledge gaps, with more than half of respondents displaying a limited understanding of which crypto activities are taxable.</p>
<h2 id="tax-literacy-and-regulatory-changes">Tax literacy and regulatory changes</h2>
<p>Findings from the 2026 Crypto Tax Readiness Report indicate that only 49 percent of surveyed investors correctly identified a taxable event as occurring when cryptocurrency is sold. Nearly a quarter mistakenly believed that simply transferring digital assets could trigger tax liabilities. The increasingly complex movement of assets—including transfers between platforms—makes it challenging for users to fulfill their tax responsibilities accurately in the United States.</p>
<h2 id="investors-struggle-with-cost-basis-and-reporting">Investors struggle with cost basis and reporting</h2>
<p>Participants in the survey, numbering 3,000, reported using an average of 2.5 different wallets or trading platforms. While a significant 83 percent said they preferred self-custody wallets, just 35 percent had previously adjusted cost basis information for their holdings. The notion of cost basis, which calculates gains by subtracting the original purchase price from the sale price, remains confusing for many in the crypto community, underlining ongoing education gaps.</p>
<p>According to a statement from Coinbase, the rollout of new regulations will require the company to issue 1099-DA forms to over four million customers. The majority of these tax forms will be sent to individuals whose annual returns fall below $600. Furthermore, more than 60 percent of users either do not have cost basis records for their assets or have incomplete documentation, largely because of transfers between different trading venues.</p>
<blockquote>
 <p>Coinbase explained that, “Currently, every stablecoin payment, minor DeFi transaction, and gas fee can technically be taxed. The administrative burden on ordinary users not only creates hassle but could also hinder innovation and widespread adoption.”</p>
</blockquote>
<h2 id="experts-weigh-in-on-the-impact-of-the-new-system">Experts weigh in on the impact of the new system</h2>
<p>Matt Price, Director of Investigations at blockchain analysis firm Elliptic, believes that a move toward standardized tax reporting will benefit the sector in the long term. Drawing on his experience as a former special agent with the US Internal Revenue Service (IRS) focused on crypto-related cases, as well as his tenure overseeing the investigations unit at <a href="https://en.coin-turk.com/binance-connect-to-shut-down-on-august-16-a-critical-decision-that-will-impact-many-people/" rel="noopener noreferrer nofollow">Binance</a>, Price noted the personal complexities of reporting crypto income for tax purposes.</p>
<blockquote>
 <p>Reflecting on his experiences, Price said, “Figuring out how to declare these payments can be daunting; when I received part of my compensation in crypto, there was no 1099 form provided. I had to handle my own accounting.”</p>
</blockquote>
<p>With the introduction of the 1099-DA tax forms, cryptocurrencies are set to be treated more like other financial assets for reporting purposes. This approach closely mirrors the 1099-B system traditionally used by brokers for mainstream investments, aiming to create more uniformity and clarity for both taxpayers and regulators.</p>
<p>Price acknowledged that the high volume and complexity of digital asset transactions complicate the calculation of cost basis, a challenge shared with other investment classes. He also pointed out that many algorithmic traders in traditional markets encounter similar reporting obstacles, and expressed optimism that the crypto sector will gradually adapt and overcome these difficulties.</p>
<p>The post <a href="https://en.coin-turk.com/coinbase-survey-reveals-widespread-confusion-over-new-crypto-tax-rules-in-the-us/" rel="noopener noreferrer nofollow">Coinbase survey reveals widespread confusion over new crypto tax rules in the US</a> appeared first on <a href="https://en.coin-turk.com" rel="noopener noreferrer nofollow">COINTURK NEWS</a>.</p>

Coinbase survey reveals widespread confusion over new crypto tax rules in the US

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