In a fiery exchange on social media, Coinbase Chief Policy Officer Faryar Shirzad has vehemently denied claims that the cryptocurrency giant is lobbying against a proposed de minimis tax exemption for Bitcoin. The denial has sparked a broader debate within the crypto community, with prominent figures like Jack Dorsey of Block Inc. calling for further transparency from Coinbase CEO Brian Armstrong.
The controversy erupted after Bitcoin podcaster Marty Bent alleged that Coinbase was telling lawmakers the exemption was unnecessary, arguing that ‘No one is using Bitcoin as money. A de minimis exemption for Bitcoin is a handout that will be DOA.’ Bent’s claims were quickly met with a strong rebuttal from Shirzad, who tweeted, ‘This is a total lie @MartyBent. We have never and will never lobby against Bitcoin. Ever.’
The De Minimis Exemption: A Crucial Step for Bitcoin Adoption
The proposed de minimis tax exemption would eliminate capital gains taxes and IRS reporting requirements on small Bitcoin transactions, setting a $300-per-transaction threshold with a $5,000 annual cap. This measure aims to remove the significant tax friction that currently discourages the everyday use of Bitcoin as a medium of exchange.
Under current law, every Bitcoin transaction, no matter how small, is treated as a taxable event. This creates a cumbersome and often prohibitive compliance burden, making it impractical for consumers to use Bitcoin for routine purchases like buying coffee or paying a freelancer. The legislation, backed by Senator Cynthia Lummis (R-WY), seeks to align routine Bitcoin payments more closely with minor foreign-currency exchanges.
Industry Support and Opposition
Block Inc., the company behind Cash App and Square, has been a vocal supporter of the de minimis exemption. In November 2025, Block launched its ‘Bitcoin is Everyday Money’ campaign, which includes rolling out Lightning Network tools to enable zero-fee Bitcoin payments for Square merchants through 2027. The company’s Bitcoin product lead, Miles Suter, emphasized the importance of Bitcoin payments, stating, ‘If Bitcoin just becomes digital gold, we failed the mission. Bitcoin payments validate Bitcoin. They make it real. Bitcoin is money.’
However, the debate has revealed a divide within the industry. Managing Director Conner Brown of the Bitcoin Policy Institute confirmed that there has been a significant shift on Capitol Hill to limit the de minimis exemption to stablecoins only. ‘BPI continues to meet with lawmakers to explain what a strategic blunder this would be for the U.S.,’ Brown said.
Data and Usage: Challenging the ‘No One Uses Bitcoin’ Claim
Recent data from the Lightning Network directly contradicts the claim that Bitcoin is not used as money. According to a February 19, 2026 report by Bitcoin Magazine, the Lightning Network processed $1.17 billion in monthly volume across 5.22 million transactions in November 2025. The average transaction size was $223, indicating a growing use case for Bitcoin in everyday transactions.
A June 18, 2025 report from Bitcoin Magazine showed that the network had reached roughly 1.5 million users and $1.5 billion in trading volume. Block’s own Lightning node produced a 9.7% yield from routing actual payments, while Cash App handled one in four outbound Lightning transactions, experiencing a 7x usage growth.
Looking Forward: The Path to Adoption
The exchange of claims and counterclaims highlights the ongoing tensions between crypto-focused platforms and companies building payment infrastructure for Bitcoin. With Lightning Network volume continuing to climb, advocates maintain that the de minimis tax exemption would accelerate commercial adoption rather than provide unearned relief. As Congress deliberates on the proposal within broader digital-asset tax reform discussions, the crypto community remains watchful and hopeful for a legislative outcome that supports the growth of Bitcoin as a viable medium of exchange.
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