Coinbase Chief Policy Officer Faryar Shirzad has vehemently denied allegations that the company is actively lobbying against a proposed de minimis tax exemption for Bitcoin. Responding to a post by Bitcoin podcaster Marty Bent, Shirzad stated on X, "This is a total lie @MartyBent. We have never and will never lobby against Bitcoin. Ever." This denial was later echoed by Coinbase CEO Brian Armstrong, who also called the rumor "totally false" after being directly questioned by Jack Dorsey of Block Inc. for clarification on the company's stance regarding the de minimis exemption.

The controversy originated from Marty Bent's March 11 report, alleging that Coinbase was advising lawmakers that the Bitcoin de minimis exemption was unnecessary because "No one is using bitcoin as money. A de-minimis exemption for bitcoin is a hand out that will be DOA." Bent further claimed that Coinbase was advocating for a stablecoins-only treatment to promote its own business interests. This sentiment was corroborated by Bitcoin Policy Institute Managing Director Conner Brown on the same day, who confirmed a significant shift on Capitol Hill over the past three months towards limiting the de minimis exemption exclusively to stablecoins. Brown emphasized the BPI's ongoing efforts to educate lawmakers on the strategic blunder such a limitation would represent for the U.S.

The de minimis tax exemption is designed to eliminate capital-gains taxes and IRS reporting requirements on small Bitcoin transactions. This addresses a longstanding hurdle hindering Bitcoin's widespread adoption as a currency. Under current U.S. law, Bitcoin is classified as property, meaning every transaction, from purchasing a coffee to paying a freelancer, constitutes a taxable event that necessitates tracking cost basis and filing extensive paperwork, making routine usage impractical.

Legislation championed by Senator Cynthia Lummis (R-WY) proposes a $300-per-transaction threshold with a $5,000 annual cap. This framework aims to align routine Bitcoin payments more closely with minor foreign-currency exchanges, which enjoy similar tax treatment. Advocates argue that this change is fundamental to removing the significant tax friction that currently disincentivizes everyday Bitcoin use, and without it, the compliance burdens severely restrict Bitcoin's utility as a medium of exchange.

Block Inc., a prominent corporate advocate, has been particularly vocal in its support for the exemption. In November 2025, the company behind Cash App and Square launched its "Bitcoin is Everyday Money" campaign, explicitly calling for the exemption while simultaneously rolling out Lightning Network tools. These tools allow Square merchants to accept Bitcoin payments with zero fees through 2027, demonstrating a practical commitment to fostering Bitcoin's use as a transactional currency.

Claims that Bitcoin sees no use as money are directly challenged by data from the Lightning Network. A Bitcoin Magazine article from February 19, 2026, reported an impressive $1.17 billion in monthly volume across 5.22 million transactions in November 2025. This aggregated data, from River Financial covering over 50% of the network capacity, showed an average transaction size rising to $223. Earlier, a June 18, 2025 report indicated the network had reached approximately 1.5 million users and $1.5 billion in trading volume. Block's own Lightning node demonstrated a 9.7% yield routing actual payments, and Cash App alone handled one in four outbound Lightning transactions following a sevenfold increase in usage.

Miles Suter, Block's Bitcoin product lead, encapsulated the company's philosophy: "If Bitcoin just becomes digital gold, we failed the mission. Bitcoin payments validate Bitcoin. They make it real. Bitcoin is money." This exchange of conflicting claims underscores the ongoing tensions between platforms focused on broader crypto ecosystems and companies dedicated to building robust payment infrastructure for Bitcoin. As Lightning Network volume continues its ascent, supporters maintain that the de minimis exemption would significantly accelerate commercial adoption rather than provide unwarranted relief. Congress continues to deliberate on this proposal as part of broader discussions on digital-asset tax reform.