In This Article
- Why should crypto holders still care about crypto taxes in a time when IRS resources are stretched thin?
- Are audits only happening to high-net-worth traders, or should smaller investors be concerned too?
- If you self-custody with a hardware wallet, can the IRS still track your crypto taxes?
- Where are the most favorable places to live for crypto taxes, both in the U.S. and abroad?
At the 2025 Bitcoin Conference in Las Vegas, we sat down with Andrew Gordon, a leading voice in crypto taxes and founder of the Main Street Crypto PAC, which champions pro-innovation legislation and the rights of everyday crypto users. Gordon’s influence spans tax policy, regulatory reform, and legislative advocacy, including recent sit-downs with lawmakers like Senators Cynthia Lummis and Marsha Blackburn.
Here’s our conversation on audits, offshore wallets, favorable tax jurisdictions, and why crypto needs to break out of its political silo.
Why should crypto holders still care about crypto taxes in a time when IRS resources are stretched thin?
“Because U.S. residents are still legally obligated to report and pay taxes—crypto included. Many traders ignore tax rules simply because they’re confusing or poorly communicated, but that doesn’t make them optional. The IRS is ramping up enforcement, with audits and even criminal cases against those who fail to report. With some basic planning, you can significantly reduce your tax exposure, avoid penalties, and stay compliant.”
Are audits only happening to high-net-worth traders, or should smaller investors be concerned too?
“Audits are happening across the board. We’ve seen middle-income clients flagged, one even got audited just for stablecoin activity, assuming incorrectly that since the coins are pegged to the dollar, no report was needed.”
He continued:
“The IRS is casting a wide net, and ignorance won’t shield you. Everyone, not just whales, is on the radar.”
If you self-custody with a hardware wallet, can the IRS still track your crypto taxes?
“Yes. Most users interact with centralized exchanges to move funds in or out, which now report to the IRS. Even some foreign exchanges are cooperating. And had Congress not recently intervened, DeFi platforms might’ve faced strict tax-reporting rules too. The point is: you’re not invisible.”
Where are the most favorable places to live for crypto taxes, both in the U.S. and abroad?
“Many think moving abroad, like to Dubai, means tax freedom, but U.S. citizens are taxed globally. The simplest move is relocating to a no-income-tax state.
But for a real game changer, consider Puerto Rico. As a U.S. territory, it offers legal tax reductions for residents, potentially bringing crypto tax rates down to zero.”
Will crypto legislation remain polarized, or is bipartisan cooperation possible?
“It must become bipartisan. Right now, crypto’s fate ping-pongs between administrations, and common-sense bills like the Genius Act are blocked on partisan lines. The goal of the Main Street Crypto PAC is to educate lawmakers—on both sides—about how real people use crypto. This isn’t just about Wall Street or VCs; it’s about entrepreneurs and builders in their basements.”
What were the key takeaways from your private lunch with Senators Lummis and Blackburn?
“They emphasized making crypto taxes easier for everyday users—pushing for a de minimis exemption on small transactions and delaying taxes on staking rewards until sold. These are practical fixes that encourage adoption without penalizing users for buying coffee with Bitcoin.”
When will Democrats get on board with crypto?
“They’ll have to. Legislative progress requires bipartisan support. Republicans are already leading, but without Democrats crossing the aisle, nothing meaningful passes.
The Genius Act’s failure showed just how polarized things are—but with pressure and education, that could change.”
Interview Key Takeaways
- U.S. residents are still legally obligated to report and pay taxes—crypto included.
- Republicans are already leading in crypto policy, but without Democrats crossing the aisle, nothing meaningful passes.
EXPLORE: XRP Price Jumps 11% After SEC Crypto Unit Tease XRP ETF Progress
Join The 99Bitcoins News Discord Here For The Latest Market Updates
Why you can trust 99Bitcoins
Established in 2013, 99Bitcoin’s team members have been crypto experts since Bitcoin’s Early days.
Weekly Research
100k+Monthly readers
Expert contributors
2000+Crypto Projects Reviewed
