On Thursday, the Bitcoin Policy Institute (BPI) released a new report on the ongoing debate in the US Congress on de minimis Bitcoin tax exemptions. This comes amid Coinbase’s fight against allegations related to the issue that surfaced earlier this week.
Concerns about the future of Bitcoin tax legislation
The BPI noted efforts by pro-cryptocurrency Senator Cynthia Lummis to include a $300 de minimis provision in the “One Big Beautiful Bill” reconciliation package.
Despite hopes for inclusion, the legislation was signed into law on July 4 without any provisions related to crypto taxes. Shortly thereafter, Lummis proposed a standalone bill that would provide a minimum of $300 along with an annual minimum of $5,000.
His proposal also helps to solve long-standing problems such as double taxation for miners and stackers, wash sale rules and other relevant issues. The Joint Committee on Taxation called the bill “revenue-positive,” predicting it could raise about $600 million over ten years.
Additionally, during a Senate hearing on February 5, 2026, Treasury Secretary Bessent indicated a willingness for his Office of Tax Policy to work directly with the Lummis team on guidance related to the bill.
On July 16, 2025, the House Ways and Means Committee held a hearing on digital asset tax policy and is expected to release the relevant legislative text soon.
However, with the midterm elections approaching, the BPI believes Congress is likely to focus more on electoral dynamics, thereby limiting the ability to pass complex tax legislation.
Senator Lummis is leaving the Senate in January 2027 and worries that if the legislative package is not implemented soon, it may not be possible for years to come. The BPI concluded:
BPI continues to educate members of Congress and the administration about the importance of bitcoin to America’s economic future and the role of smart tax policy in unlocking it. This issue is too persistent and the window is too narrow to be left to one’s own devices.
Coinbase denies the allegations
In the midst of this legislative talk, Coinbase finds itself at the center of a new controversy. Bitcoinist reported On Wednesday, the exchange reportedly opposes the proposed Bitcoin de minimis tax exemption in favor of a regulatory framework that prioritizes stability over BTC.
Comments from Marty Bent, managing partner of Ten31, suggest that Coinbase may lobby against these exceptions, prompting accusations that the exchange is aiming to dilute Bitcoin to stable coin interests.
In response to these claims, Faryor Shirzod, Coinbase’s Chief Policy Officer, firmly stated: refused claims, stating on social media, “This is a complete lie @MartyBent. We have never lobbied against Bitcoin and never will.”
He further clarified his position to crypto author Parker Lewis, to express that Coinbase does not minimize the importance of tax treatment for Bitcoin transactions and states that their promotion for Bitcoin and crypto in Washington, DC is strong.
At the time of writing, BTC was trading around $70,070, acting as a major price magnet for the cryptocurrency throughout the week, with no clear direction for its next move yet.
Featured image from OpenArt, chart from TradingView.com
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