Jack Dorsey, founder of the payments company Square, has pushed for a de minimis tax exemption for small Bitcoin transactions. The call came as Square announced it would integrate Bitcoin payment services for merchants using its checkout and point-of-sale systems.
On Wednesday, Dorsey stated, “We want Bitcoin to be everyday money ASAP,” linking the goal to his company’s new service integration. His comments were highlighted by Wyoming Senator Cynthia Lummis.
Working on it. If this is of interest to you, please tell your Senators/House member! https://t.co/HXagXRsK1Q
— Cynthia Lummis 🦬 (@CynthiaMLummis) October 9, 2025
In July, Lummis had introduced a standalone crypto tax bill that included a de minimis tax provision. This proposed legislation would exempt Bitcoin transactions of $300 or less from capital gains tax. The bill also specified an annual exemption cap of $5,000 per individual. Under existing United States tax law, every Bitcoin transaction is treated as a taxable event, subject to capital gains tax if the asset’s value has increased since it was acquired. This tax treatment is cited as a significant barrier limiting Bitcoin’s use as a medium of exchange for common purchases.
Proponents of the cryptocurrency continue to advocate for tax exemptions on small transactions. The objective is to foster Bitcoin’s utility as a peer-to-peer digital cash system, a function described in the original whitepaper by its creator, Satoshi Nakamoto. This would complement its current primary use as a store-of-value asset. The push for regulatory clarity has extended to legislative bodies, with crypto industry executives joining the call for reform.
In October, the U.S. Senate Committee on Finance conducted a hearing to address crypto tax regulation. During the hearing, Lawrence Zlatkin, vice president of tax at the cryptocurrency exchange Coinbase, formally requested that the Senate codify a de minimis tax exemption for crypto transactions valued up to $300. Zlatkin contended that such an exemption would directly stimulate the use of cryptocurrencies for retail commerce. He also argued that it would help ensure that payment innovation remains within the United States rather than moving to other countries.
The issue of international competition is a key factor in these discussions. Several foreign jurisdictions, including the United Arab Emirates, Germany, and Portugal, have already implemented favorable tax treatments for digital assets. This regulatory environment is designed to attract investment and crypto-focused companies. As a result, these nations are seen as having a competitive advantage over the U.S. for crypto funds and companies looking to establish operations.
