Brian Armstrong Rejects Lobbying Against Bitcoin De Minimis Tax Exemption

Brian Armstrong says claims that Coinbase opposed Washington’s de minimis Bitcoin tax exemption are “absolutely false.”

Brian Armstrong, CEO of Coinbase, has pushed back against claims that his company’s lobbyists are working to block the Bitcoin (BTC) tax exemption in Washington, calling the claims “absolutely false.”

The debate has attracted Bitcoin advocates, tax lawyers and crypto lobbyists, and cut to the heart of a broader debate about who the biggest crypto companies represent when they walk the halls of Congress.

What are the accusations?

The claims were made by Truth for the Commoner (TFTC), a Bitcoin-focused media account with nearly 100,000 X followers, who posted on March 11 that Coinbase told lawmakers that “no one uses Bitcoin as money” and that the release of BTC de minimis would be “DOA.”

According to the TFTC, Coinbase has a financial incentive to oppose the BTC tax exemption. The report stated that the exchange generated $1.35 billion in stablecoin revenue last year, with almost all of that money backed by interest from US Treasuries in USDC reserves.

The TFTC also suggested that a de minimis rule covering BTC, but not stablecoins, would make the crypto king a more attractive option, drawing users away from Coinbase’s stable yield ecosystem.

Recall that last year, Wyoming Senator Cynthia Lummis introduced digital asset tax legislation that seeks to provide a de minimis exemption for the tax on crypto profits from crypto transactions up to $300. According to TFTC, the Bill House version goes above $200 and only covers stablecoins.

Armstrong directly responded to the allegations against Coinbase, saying:

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“Not sure where you’re getting this misinformation (maybe you can share?) but it’s completely false. I’ve spent a lot of time lobbying for a Bitcoin de minimis tax exemption and will continue to do so.”

However, TFTC co-founder Mart Bent told Armstrong:

“I have sources that say otherwise, not you personally, but your team and/or lobbyists.”

He also asked if the head of Coinbase would walk away from the market structure project if it did not have a de minimis exemption for Bitcoin, as he did earlier this year when he withdrew his support for the CLARITY Act after disagreements over the stablecoin yield.

A policy debate with many moving parts

Meanwhile, tax lawyer Jason Schwartz, known as “CryptoTaxGuy” on X, tried to provide some context on the exchange between Armstrong and TFTC.

According to him, the debate could mix four separate policy ideas, which are personal use rules, gas fee exemptions, changes to stablecoin reporting and plans to calculate stablecoin profits and losses.

Schwartz added that different market participants will naturally advocate harder for different regulations, and that this alone should not be seen as one side trying to “kill” another regulation.