Key Takeaways:
- Jack Dorsey supports a de minimis tax exemption to encourage everyday Bitcoin use, coinciding with Square’s Bitcoin payment integration.
- Senator Cynthia Lummis backs a similar bill exempting Bitcoin transactions under $300 from capital gains tax.
- Advocates argue tax reform is essential for U.S. crypto competitiveness, citing favorable regulations in countries like Germany and the UAE.
Jack Dorsey, founder of Square, has called for a de minimis tax exemption on small Bitcoin transactions to make BTC more practical for everyday payments.
The proposal aligns with efforts by U.S. Senator Cynthia Lummis, who introduced a bill in July seeking to exempt Bitcoin transactions under $300 from capital gains tax, capped at an annual limit of $5,000.
Working on it. If this is of interest to you, please tell your Senators/House member! https://t.co/HXagXRsK1Q
— Cynthia Lummis 🦬 (@CynthiaMLummis) October 9, 2025
Under current U.S. tax rules, every Bitcoin transaction – even minor ones – can trigger taxable events due to price fluctuations, discouraging its regular use for purchases.
Dorsey’s remarks followed Square’s rollout of Bitcoin payment support for merchants, part of his long-term goal to make Bitcoin “everyday money.”
Bitcoin advocates argue that such reforms would help restore Bitcoin’s original role as a peer-to-peer digital cash system, while still maintaining its store-of-value function.
The call comes amid broader U.S. discussions on crypto regulation, including Senate Finance Committee hearings in October, where Coinbase’s VP of Tax urged lawmakers to formalize a de minimis exemption.
Industry leaders warn that without more favorable crypto tax policies, the U.S. could lose competitiveness to countries like Germany, Portugal, and the UAE, which already have crypto-friendly tax regimes encouraging innovation and adoption.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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