Jack Dorsey, founder of Square, has called for a de minimis tax exemption for small bitcoin transactions in the United States, aiming to make bitcoin more suitable for everyday use.
Dorsey’s push for bitcoin as daily money
Following Square’s rollout of bitcoin payment services for merchants, Dorsey stated:
“We want Bitcoin to be everyday money ASAP.”
His comments align with ongoing efforts to integrate bitcoin into daily commerce, removing barriers for both consumers and businesses.
Legislative efforts gain traction
Wyoming Senator Cynthia Lummis has introduced a bill proposing that bitcoin transactions of $300 or less be exempt from capital gains tax, with an annual exemption cap of $5,000.
Currently, all bitcoin transactions are subject to capital gains tax if sold for more than the purchase price, limiting its use as a true medium of exchange.
Industry and international perspectives
Lawrence Zlatkin, vice president of tax at Coinbase, urged the U.S. Senate Finance Committee to codify a de minimis exemption, arguing it would encourage payment innovation domestically. O
ther countries, including the UAE, Germany, and Portugal, already offer favorable tax treatment for digital assets, attracting companies and talent that might otherwise operate in the U.S.
Advocates push for peer-to-peer adoption
Bitcoin advocates continue to press for tax reform to realize the peer-to-peer digital cash system described by Satoshi Nakamoto.
Exemptions on small transactions are viewed as a key step toward mainstream adoption, supporting bitcoin’s role as both a payment tool and a store-of-value asset.
