Cards (Coinbase Card, Crypto.com Visa) that sell your crypto at the point of purchase to pay the merchant in dollars.
Every tap is a disposal of the crypto sold, at that moment's value, with gain or loss against the lot used. A year of coffee and groceries on a crypto card can produce hundreds of taxable events, and the card issuer's 1099-DA reports the proceeds. Spending stablecoins keeps the gains negligible; spending BTC does not.
Yes. Each purchase sells crypto to pay the merchant, which is a disposal with gain or loss. Spending stablecoins minimizes the gain; spending appreciated coins does not.
Source: IRS Notice 2014-21; Form 1099-DA instructions
Last reviewed September 18, 2026. Tax rules change; confirm current law before acting.
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