US Lawmakers Exclude BTC From De Minimis Tax Exemption: BPI
The Bitcoin Policy Institute (BPI) warns that US lawmakers have not included a de minimis tax exemption for small Bitcoin transactions, potentially limiting such relief to stablecoins. A bill introduced by Senator Cynthia Lummis proposes a de minimis tax exemption for crypto transactions under $300, with annual limits and additional provisions for charitable donations and mining or staking rewards, but may exclude Bitcoin. BPI argues this exclusion is a significant mistake, since a tax exemption would promote Bitcoin's use as a medium of exchange. Critics question the necessity of tax exemptions for stablecoins, given their stable value. Regulatory uncertainty and current capital gains taxes discourage the use of Bitcoin for payments, with high fees, slow transaction times, and tax issues causing many users to hold rather than spend BTC. Technologies like the Lightning Network aim to address speed and cost, enabling easier small-value Bitcoin transactions via off-chain solutions.
