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- Only 49% of U.S. crypto users know selling assets triggers crypto tax events.
- Many investors misread rules, with wallet transfers wrongly seen as taxable.
- Cost basis confusion persists as most users fail to track gains accurately.
A new industry report shows many U.S. investors remain unclear about crypto tax rules. The findings reveal gaps in basic knowledge. This comes as digital assets gain wider use. Experts warn confusion may lead to costly reporting errors.
The 2026 Crypto Tax Readiness Report was released by Coinbase and CoinTracker. It surveyed 3,000 U.S. crypto holders. The study took place from September to October 2025. It provides insight into how users understand tax obligations.
However, only 49% of users are aware that selling cryptocurrency leads to a taxable event. This is an issue that reveals a knowledge gap. There is still a lot of misunderstanding about key regulations. This is despite increased participation in the market.
Around 25% of users think that transferring assets in a wallet leads to tax. This is incorrect. This demonstrates a lack of clarity. There is also a need for better education.
Confusion Over Crypto Tax Rules Continues
However, users want to comply with regulations. This is revealed by 65%, who said that they have reported their activities. Another 15% said that they did not have any taxable events. However, there is still a lack of clarity on reporting.
Lawrence Zlatkin, Coinbase’s Vice President of Tax, addressed the findings. He said the data reflects uncertainty among users, many struggle with cost basis tracking. He added that tools are needed to support accurate filing.
The report outlines several misunderstandings. Around 41% think moving funds to a bank account is taxable. Another 36% believe taxes apply only after certain profit levels. About 31% think crypto conversions are not taxable events.
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Cost basis tracking presents another challenge. Around 71% of users have moved crypto between wallets. However, only 35% adjust their cost basis correctly. This creates risks when calculating gains or losses.
Global Crypto Tax Uncertainty
Shehan Chandrasekera, representative of CoinTracker, has commented on this issue. He has said that users need to compute the cost basis and the holding periods. He has explained that the process is complicated and emphasized the importance of the role of the tracking tools.
The traditional tax methods are still widely practiced. Around 78% of the users are using general tax software. Around 52% are consulting accountants. However, these methods may not be effective.
The policy talks are going on outside the U.S. In South Korea, the lawmakers are planning to introduce the crypto tax in 2027. They are concerned about the double taxation. This is another example of the uncertainty about the policy frameworks.
The policy talks in the U.S. were delayed. A congressional roundtable was delayed due to storms. Several lawmakers were expected to attend the event. This has slowed down the talks.
The report has emphasized the need to provide crypto tax guidance. It is said that the rules need to be more understandable. If the rules are not understandable, there is a risk of errors. This may affect the growth of the market.
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