Coinbase has criticized new U.S. tax reporting requirements for cryptocurrency transactions, labeling them as overly complex and burdensome for retail investors. The rules mandate reporting of stablecoin transactions and minor network fees, which Coinbase argues adds unnecessary clutter to the tax system. Lawrence Zlatkin, Coinbase's VP of tax, highlighted the disproportionate impact on small retail investors, who face administrative burdens for minimal transaction flows. The new system requires trading platforms to share customer transaction details with the IRS, but only gross proceeds are reported, leaving traders to calculate their own cost basis. This complexity is compounded by the need to report stablecoin holdings and gas fees, which Zlatkin argues do not constitute taxable income. Coinbase aims to simplify this process by developing tools to assist users in calculating their crypto cost basis more easily.