Key takeaways
- Coinbase CPO Faryar Shirzad calls allegations of lobbying against Bitcoin tax relief "a total lie"
- Jack Dorsey publicly presses Brian Armstrong to confirm support for de minimis Bitcoin payment exemptions
- Bitcoin Policy Institute confirms a three-month Capitol Hill shift toward limiting tax relief to stablecoins only
The Accusations
Podcaster Marty Bent reported, citing three separate sources, that Coinbase told lawmakers the de minimis tax exemption for Bitcoin was unnecessary because "nobody uses Bitcoin as money" and called it "a gift that will be killed." The allegation: Coinbase advocated limiting tax benefits to stablecoins only, which would benefit its own USDC-linked business at Bitcoin's expense.
Coinbase Chief Policy Officer Faryar Shirzad responded directly:
'This is a total lie Marty Bent. We have never and will never lobby against Bitcoin. Ever.'
CEO Brian Armstrong called the claim "totally false."
Dorsey Enters the Ring
Block founder Jack Dorsey, whose company has been running a "Bitcoin is Everyday Money" campaign and offering zero-fee Bitcoin payments through 2027, publicly pressed Armstrong for clarity. His response to Armstrong's denial was pointed: "hope this is true for de minimis as well, Brian Armstrong?"
The de minimis exemption, sponsored by Senator Cynthia Lummis, would eliminate capital gains taxes and IRS reporting on Bitcoin transactions under $300, with a $5,000 annual cap. Under current law, Bitcoin is treated as property, making every single purchase a taxable event, effectively killing its use as everyday money.
The Hill Shift
Bitcoin Policy Institute Managing Director Conner Brown confirmed a related and troubling development:
'I can confirm that over the past three months there's been a strong shift on the Hill to limiting the de minimis exemption to stablecoins only. BPI continues to meet with lawmakers to explain what a strategic blunder this would be for the U.S.'
Why It Matters
Legislation and regulation is the arena where companies have always competed to carve advantages for themselves. If the stablecoin-only exemption prevails, it would enshrine corporate-issued tokens as the only tax-friendly digital payment method while keeping Bitcoin, the only decentralized monetary network, burdened with per-transaction tax reporting. The de minimis exemption is a reasonable first step, but it should not be the finish line. Scrapping all capital gains taxes on Bitcoin should be the ultimate goal. You cannot tax money, as Ron Paul would say, and every serious Bitcoiner knows that is exactly what Bitcoin is.
