Policy Group Calls For Bitcoin Inclusion In Tax Exemptions

"Under current law, bitcoin is treated as property, which means every purchase with the asset triggers a capital gains calculation, regardless of transaction size. BPI argues that this framework discourages routine payments, such as buying coffee or sending small remittances, because users must track cost basis and report minor gains and losses."

"BPI describes that shift toward a 'stablecoin-only' de minimis model as a significant departure from earlier bipartisan efforts to cover a broader range of digital assets. The group contends that limiting relief to stablecoins would leave most bitcoin payments subject to full reporting obligations while also failing to account for the fact that stablecoin transactions rely on separate network tokens for transaction fees, which remain taxable events."

"The organization is pressing for a value-based exemption that would apply to both GENIUS-compliant payment stablecoins and large-cap network tokens, potentially up to 600 dollars per transaction with an annual cap near 20,000 dollars."

Bitcoin is currently taxed as property, requiring capital gains calculations for every transaction regardless of size, which discourages routine payments like coffee purchases or remittances. The Bitcoin Policy Institute advocates for de minimis tax relief extending beyond payment stablecoins to include bitcoin and other major network tokens. Congress has proposed various approaches: Senator Lummis introduced a bill with a $300 per-transaction threshold and $5,000 annual cap addressing mining and staking; House members proposed a narrower stablecoin-only exemption with a $200 threshold. BPI argues that limiting relief to stablecoins is insufficient because stablecoin transactions still require network tokens for fees, which remain taxable. The organization has launched a coalition letter and Capitol Hill outreach campaign, meeting with 19 congressional offices to advocate for a value-based exemption covering both payment stablecoins and large-cap network tokens.

Read at Bitcoin Magazine