On Thursday, the Bitcoin Policy Institute (BPI) published a new report regarding the ongoing discussion in the US Congress about the Bitcoin de minimis tax exemption. This comes amidst Coinbase’s battle against accusations related to the issue that surfaced earlier this week.
Concerns Over Future Of Bitcoin Tax Legislation
The BPI has brought attention to the efforts of pro-cryptocurrency Senator Cynthia Lummis, who is seeking to incorporate a $300 de minimis provision into the reconciliation package referred to as the “One Big Beautiful Bill.”
Despite hopes for inclusion, the legislation was signed into law on July 4 without any provisions addressing crypto taxes. Shortly thereafter, Lummis introduced a standalone bill that proposes a $300 transaction threshold along with a $5,000 annual cap.
Her proposal also seeks to tackle longstanding concerns such as double taxation for miners and stakers, the wash sale rules, and other pertinent issues. The Joint Committee on Taxation has deemed the bill “revenue-positive,” predicting it could generate approximately $600 million over a decade.
Furthermore, during a Senate hearing on February 5, 2026, Treasury Secretary Bessent expressed a willingness for his Office of Tax Policy to collaborate directly with Lummis’ team on guidance related to the bill.
The House Ways and Means Committee held hearings regarding digital asset tax policy on July 16, 2025, and is expected to soon release relevant legislative text.
However, with the midterm elections approaching, the BPI believes Congress is likely to become increasingly focused on electoral dynamics, thus squeezing the capacity for complex tax legislation.
Senator Lummis will depart the Senate in January 2027, raising concerns that if a legislative package does not materialize soon, the opportunity for its implementation might not arise for years. The BPI concluded:
BPI will continue educating members of Congress and the administration about bitcoin’s importance to America’s economic future and the role that sensible tax policy plays in unlocking it. This issue is too consequential, and the window too narrow, to leave to chance.
Coinbase Denies Accusations
In the midst of this legislative discourse, Coinbase finds itself at the center of a new controversy. Bitcoinist reported Wednesday that the exchange is allegedly opposing the proposed Bitcoin de minimis tax exemption to favor a regulatory framework that prioritizes stablecoins over BTC.
Insights from Marty Bent, managing partner at Ten31, indicate that Coinbase may be lobbying against these exemptions, prompting accusations that the exchange aims to undermine Bitcoin in favor of stablecoin interests.
In response to these allegations, Faryar Shirzad, Coinbase’s Chief Policy Officer, firmly refuted the claims, stating on social media, “This is a total lie @MartyBent. We have never and will never lobby against Bitcoin. Ever.”
He further clarified his stance to crypto author Parker Lewis, expressing that Coinbase does not downplay the importance of tax treatment for de minimis Bitcoin transactions and asserting that their advocacy for Bitcoin and crypto in Washington, D.C. is strong.
At the time of writing, BTC traded at around $70,070, which has acted as a major price magnet for the cryptocurrency throughout the week, with no clear direction of its next move yet.
Featured image from OpenArt, chart from TradingView.com
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