In a recent statement, Faryar Shirzad, the Chief Policy Officer of Coinbase, emphatically denied allegations suggesting that the company is actively lobbying against a proposed de minimis tax exemption for Bitcoin. Responding on the social media platform X to a critical post from Bitcoin podcaster Marty Bent, Shirzad asserted, “This is a total lie @MartyBent. We have never and will never lobby against Bitcoin. Ever.” This denial raises questions, particularly as many are now calling for a public statement from Coinbase’s CEO, Brian Armstrong, to clarify the company’s stance on the issue.
The controversy gained traction after Bent reported that Coinbase has been communicating to lawmakers that the de minimis tax exemption is unnecessary because, in their estimation, “No one is using bitcoin as money.” Bent alleged that Coinbase is instead advocating for a focus on stablecoins, suggesting that this push serves the company’s business interests rather than the broader Bitcoin community.
Conner Brown, Managing Director of the Bitcoin Policy Institute, corroborated the shifting legislative landscape. He noted that in recent months, there has been a notable movement among lawmakers towards restricting the de minimis exemption solely to stablecoins. Brown remarked, “BPI continues to meet with lawmakers to explain what a strategic blunder this would be for the U.S.”
The de minimis tax exemption aims to remove capital-gains taxes and IRS reporting requirements on smaller Bitcoin transactions, addressing a barrier to the broader adoption of Bitcoin as a currency. Currently, Bitcoin is categorized as property, meaning that every transaction—no matter how minor—triggers a taxable event. This includes everyday purchases like coffee or payments to freelancers, necessitating meticulous tracking of cost basis and tax paperwork.
Proposed legislation, supported by Senator Cynthia Lummis (R-WY), seeks to establish a threshold of $300 per transaction, with a cap of $5,000 annually, bringing Bitcoin transactions in line with minor foreign-currency exchanges. Proponents argue that this change is vital to alleviate tax-related obstacles that hinder everyday Bitcoin usage. Absent such reforms, the compliance requirements remain cumbersome, making Bitcoin less practical for routine purchases and stunting its role as a medium of exchange.
Amidst the ongoing debate, Block Inc., the company behind Cash App and Square, has emerged as a staunch advocate for the de minimis exemption. The firm launched its “Bitcoin is Everyday Money” campaign in November 2025, unequivocally calling for the exemption while simultaneously rolling out Lightning Network tools to enable Square merchants to accept Bitcoin payments without fees through 2027.
Recent data from Bitcoin Magazine contradicts claims that Bitcoin lacks utility as a currency. A report indicated significant activity on the Lightning Network, with $1.17 billion in monthly volume across over 5 million transactions in November 2025. Average transaction sizes have reached $223, demonstrating an active use case for Bitcoin beyond mere speculation.
Miles Suter, the lead for Block’s Bitcoin product, encapsulated the company’s philosophy, stating, “If Bitcoin just becomes digital gold, we failed the mission. Bitcoin payments validate Bitcoin. They make it real. Bitcoin is money.” This sentiment underscores the differing perspectives between cryptocurrency platforms focused on asset trading and those developing payment infrastructures.
As Congress continues to evaluate the proposal within the broader context of digital asset tax reform, advocates assert that the de minimis exemption could significantly boost commercial adoption, highlighting the tension between disparate factions within the cryptocurrency ecosystem.
