Coinbase Allegedly Conducted Lobbying Activities Against Bitcoin in the US

The cryptocurrency exchange Coinbase has allegedly been lobbying against a planned “de minimis” tax exemption for Bitcoin under the controversial crypto tax regulations being debated in the US.

The company allegedly argued to lawmakers that Bitcoin is not widely used as a means of daily payment, and that implementing such an exemption would be “stillborn from the start.”

The debate revolves around a de minimis exemption, which aims to eliminate tax liability for small-amount cryptocurrency transactions. Such a regulation could allow users to make everyday payments with cryptocurrency without having to calculate capital gains tax on transactions below a certain amount. However, Coinbase argues that this exemption should only cover regulated, dollar-pegged stablecoins, with USD Coin (USDC), which is closely associated with the company, being a prominent example.

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Coinbase’s stablecoin revenue is also at the center of the debate. The company reports that it will generate approximately $1.35 billion in revenue from stablecoin operations in 2025, with a large portion of this coming from interest earned on US Treasury bonds held in USDC reserves. This revenue stream could grow even further, particularly if legislation like the GENIUS Act, which includes stablecoin regulations in the US, comes into effect. According to Bloomberg, these revenues could potentially increase by up to seven times.

The criticism is that excluding a tax exemption that would encourage the use of Bitcoin as a means of payment could affect competition. A de minimis exemption could make Bitcoin more practical for small, daily payments. Under the current system, each Bitcoin payment can potentially result in a capital gain or loss due to price fluctuations, making tax calculations difficult.

Cynthia Lummis, known for her crypto-friendly policies in the US Senate, had previously proposed a $300 de minimis exemption that would include Bitcoin. In contrast, some framework proposals being discussed in the House of Representatives reportedly only cover stablecoin transactions below $200.

On the other hand, organizations like the Bitcoin Policy Institute have warned that Bitcoin has been deliberately excluded from the ongoing negotiations.

*This is not investment advice.

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