A top tax executive for U.S. crypto exchange Coinbase suggested to U.S. senators at a Wednesday hearing that the Internal Revenue Service is ill equipped to handle the kind of tax reporting already in the works under current rules and that may be produced in future regulations.

"The IRS is probably unprepared today to endure or to absorb the amount of information that Coinbase alone will be providing," said Lawrence Zlatkin, vice president for tax at the exchange, during a Senate Finance Committee hearing examining the U.S. approach to taxing the crypto sector. "We're going to be testing that in a little while."

He said it's important to consider administrability — what the agency can realistically manage — as the future rules are contemplated, because "this is one asset class that is so

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