Coinbase CEO Denies Claims of Lobbying Against Bitcoin De Minimis Tax Exemption

Debate around a proposed tax exemption for small cryptocurrency transactions has intensified after social media claims suggested Coinbase was lobbying lawmakers to block a de minimis rule for Bitcoin while supporting similar treatment for stablecoins.

The allegations circulated as policymakers in Washington continue discussions over tax relief measures intended to make digital assets easier to use for everyday payments. Coinbase Chief Executive Brian Armstrong publicly rejected the claims, stating that the exchange has been advocating for a Bitcoin de minimis exemption rather than opposing it.

The controversy emerged after a post by the account TFTC alleged that Coinbase had quietly urged lawmakers to abandon a Bitcoin de minimis tax exemption while supporting the idea only for regulated dollar-pegged stablecoins such as USDC.

The post argued that such a policy could benefit Coinbase because the company generated $1.35 billion in stablecoin revenue in 2025, largely from interest earned on U.S. Treasuries held in USDC reserves.

According to the post, stablecoin payment activity would allow funds to remain within Coinbase-linked reserve pools, generating yield for the company. The claim also referenced estimates from Bloomberg suggesting that stablecoin-related revenue could increase under the GENIUS Act.

Armstrong the accusation directly on social media. He wrote that the claims were “totally false” and said he had spent lots of time lobbying in support of a Bitcoin de minimis exemption and intended to continue doing so.

The policy discussion centers on a tax issue affecting how cryptocurrencies are treated under U.S. law. Because Bitcoin is classified as property, each transaction triggers a capital gains calculation and reporting obligation, even for small purchases. According to the Bitcoin Policy Institute, a minor purchase such as a coffee bought with Bitcoin can require the same tax reporting treatment as a large asset sale.

Senator Cynthia Lummis has legislation that would create a $300 de minimis exemption for cryptocurrency transactions used to purchase goods or services. The proposal includes an annual cap of $5,000 and excludes certain transactions, such as exchanges of crypto into cash or stablecoins or assets used in business activities.

Policy discussions on Capitol Hill have recently shifted toward a narrower framework that would limit the exemption to regulated payment stablecoins. A bipartisan discussion draft from Representatives Max Miller and Steven Horsford proposed a stablecoin-specific exemption with an intended $200 threshold, excluding Bitcoin.

The Bitcoin Policy Institute raised concerns about that direction, arguing that limiting the exemption to stablecoins would not address the tax-reporting challenges faced by users who spend Bitcoin or other digital assets.