Bitcoin Policy Institute is calling on Congress to extend the proposed tax de minimis relief to digital assets, beyond stablecoins for payment. This would include bitcoins and major network tokens.
Bitcoin is currently treated by law as a property. This means that any purchase made with bitcoin triggers the calculation of capital gain, irrespectively of the transaction amount.
BPI argues The framework does not encourage routine payments like buying coffee or sending small sums of money, as users have to keep track of cost basis and declare minor gains and loss.
In the 119th congress, lawmakers have tried several different approaches. Senator Cynthia Lummis presented a stand-alone bill to address the issue. create a 300 dollar per‑transaction threshold with a 5,000 dollar annual cap and address mining and staking taxation.
Max Miller, Steven Horsford and other members of the House floated an idea for a conversation. draft The PARITY Act would allow for a more narrow exemption of regulated stablecoins, and a target threshold of 200 dollars in line with the foreign currency regulations.
BPI defines that shift to a “stablecoin‑only” The de minimis approach is a departure from previous bipartisan efforts that covered a wider range of digital assets.
This group argues that by limiting the relief for stablecoins, most bitcoin payments would still be subject to full reporting and tax obligations.
BPI responded by leading a coalition to the key tax writers, and mounting an outreach campaign in Capitol Hill. They met with 19 offices of both chambers on Capitol Hill over the last three months.
The organization is pressing for a value‑based exemption that would apply to both GENIUS‑compliant payment stablecoins and large‑cap network tokens, potentially up to 600 dollars per transaction with an annual cap near 20,000 dollars.
BPI warns against using midterm politics As Senator Lummis prepares to depart the Senate in Jan 2027, if Congress fails to advance a comprehensive package of digital asset tax legislation before the expected legislative push for August 2026.
Coinbase denies that they oppose Bitcoin tax relief
Faryar Shirzad Chief Policy Officer at Coinbase and Brian Armstrong CEO recently discussed this. denied Marty Bent’s Bitcoin podcast, which claimed the exchange lobbied in opposition to the de minimis exemption of tax for Bitcoin was addressed on X.
Shirzad made the accusation “a total lie,” Statements that the company never has and never will lobby against Bitcoin.
Bent reported on March 11, that Coinbase told legislators the exemption wasn’t necessary because Bitcoin is not widely used.
Bent claimed that the de minimis exclusion would amount to an exemption. “handout” It was unlikely that the bill would pass, and instead advocated for a stablecoin tax treatment which could be beneficial to its business model. Bent claimed to have three different sources that supported his claims.
Armstrong rejected the allegation, calling the rumor “totally false” Jack Dorsey, Block Inc.’s CEO Jack Dorsey publicly requested clarification.
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Source: bitcoinmagazine.com
