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, one of the most respected names in crypto taxation and policy. Gordon is not only a leading crypto tax attorney and CPA, but also the founder of the Main Street Crypto PAC, an organization dedicated to promoting pro-innovation legislation and defending the rights of everyday crypto investors and builders. His work bridges the often-confusing gap between tax compliance and the rapidly evolving world of digital assets. Andrew helps both individuals and businesses navigate everything from staking income and airdrops to DeFi gains and NFT reporting.
Over the past year, Gordon has become a familiar face in Washington, working alongside lawmakers such as Senators Cynthia Lummis and Marsha Blackburn to push for clear, fair, and innovation-friendly tax frameworks for crypto. With the IRS increasingly active in auditing crypto users and new reporting rules taking effect, his insights couldn’t be more timely.
As 2025 winds down, crypto taxes are once again stressing out investors. With new IRS reporting rules and Form 1099-DA set to roll out in early 2026, even experienced traders are scrambling to organize their records. Between NFTs, staking rewards, and DeFi gains, tracking every taxable event has never been more complicated. That’s where Gordon’s work comes in. Helping everyday crypto users stay compliant while pushing for simpler, fairer tax rules that make sense in the digital age.
In this exclusive interview, we dig into the nuances of crypto audits, offshore wallets, and favorable tax jurisdictions. We’ll also explore why Gordon believes the crypto industry must move beyond partisanship to secure its place in the future of finance.
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.
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