According to reports, cryptocurrency exchange Coinbase is lobbying in the U.S. against a "de minimis" tax exemption plan for Bitcoin. This plan is a controversial part of cryptocurrency tax regulations currently under discussion.
It is claimed that the company argues to lawmakers that Bitcoin is not widely used as a means of everyday payment, and therefore, implementing such an exemption would be "dead on arrival."
The crux of the debate centers around the "de minimis" exemption, which aims to eliminate the tax burden on small cryptocurrency transactions. This regulation could allow users to make everyday payments with cryptocurrency without calculating capital gains tax on transactions below a certain amount. However, Coinbase believes that this exemption should only cover regulated stablecoins pegged to the U.S. dollar, such as USD Coin (USDC), with which it has close ties.
Coinbase's stablecoin revenue is also a focal point of the debate. The company reports that it expects stablecoin business revenue to reach approximately $1.35 billion by 2025, a significant portion of which comes from interest income on U.S. Treasury bonds held in USDC reserves. If legislation like the GENIUS Act, which includes U.S. stablecoin regulation, comes into effect, this revenue source could further grow. According to Bloomberg, these revenues could increase by as much as sevenfold.
Critics argue that excluding a tax exemption aimed at encouraging the use of Bitcoin as a payment method could impact market competition. The de minimis exemption could make Bitcoin more suitable for small everyday payments. Under the current system, each Bitcoin payment could generate capital gains or losses due to price volatility, complicating tax calculations.
U.S. Senator Cynthia Lummis, known for her pro-cryptocurrency policies, previously proposed a $300 de minimis exemption that includes Bitcoin. In contrast, some framework proposals reportedly being discussed in the House only cover stablecoin transactions below $200.
On the other hand, organizations like the Bitcoin Policy Institute warn that Bitcoin has been deliberately excluded from ongoing negotiations.