- Tax rules, not transaction speed or cost, are cited as the main barrier to wider Bitcoin use for payments.
- The absence of a de minimis tax exemption means small Bitcoin transfers can trigger taxable events.
- A proposed Senate bill would exempt digital asset transactions up to $300 with a $5,000 annual cap and carve-outs for charitable donations.
- Some lawmakers may restrict de minimis treatment to overcollateralized dollar-pegged stablecoins, drawing criticism from Bitcoin supporters.
- Industry figures including Jack Dorsey and Bitcoin advocates have publicly urged tax changes to support everyday Bitcoin payments.
Pierre Rochard, a board member at Strive, said tax policy — not scaling technology — is the biggest obstacle to using Bitcoin (BTC) as money; he made the point on social media said. In December 2025, the Bitcoin Policy Institute warned that the U.S. lacks a de minimis tax exemption for small Bitcoin transactions, which makes each BTC transfer potentially taxable.
The lack of a de minimis exemption means everyday payments can create taxable events and reporting burdens. U.S. lawmakers are debating proposals that would limit de minimis treatment to overcollateralized dollar-pegged stablecoins, a move that drew pushback from Bitcoin proponents.
In July 2025, Senator Cynthia Lummis introduced a bill proposing a $300 de minimis exemption per transaction with a $5,000 annual cap and exemptions for charitable donations; the bill text is available here. The proposal also would defer income recognition from staking and mining until the assets are sold, rather than taxing rewards when received.
Payments entrepreneur Jack Dorsey urged tax relief for small BTC payments, writing that the goal is everyday use: “We want BTC to be everyday money ASAP”, as he stated on social media said. Bitcoin commentator Marty Bent criticized any stablecoin-only approach as “nonsensical.” He posted his reaction on social media said.
Rochard also used a sports metaphor to emphasize action over potential; his post is visible here. For more on editorial standards, see the publication’s editorial policy.
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