- Brian Armstrong rejects claims Coinbase opposed proposed Bitcoin tax exemption policy.
- Coinbase denies lobbying against Bitcoin tax relief amid stablecoin revenue speculation.
- Jack Dorsey questions Coinbase stance before Armstrong publicly confirms support.
Claims circulating on X suggested that Coinbase privately discouraged lawmakers from supporting a Bitcoin tax exemption in the United States, prompting the company’s leadership to respond publicly and reject the accusations. The claims spread among cryptocurrency supporters who view the proposed tax relief as important for expanding Bitcoin’s role in everyday payments.
Bitcoin tax exemption proposal explained
The issue centers on a proposed de minimis tax exemption that would remove capital gains taxes from small Bitcoin transactions. If implemented, the measure would allow individuals to spend Bitcoin on routine purchases without triggering complicated tax calculations tied to price movements.
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Supporters argue that the current tax structure discourages the use of Bitcoin for daily payments because each transaction requires users to calculate gains or losses. Removing that burden could make it easier for consumers and merchants to integrate Bitcoin into ordinary payment activity.
Stablecoin revenue raises speculation
However, several posts circulating on X claimed that Coinbase privately indicated to lawmakers that the exemption lacked strong political support and would struggle to move forward through the legislative process. These claims raised questions about whether the company supported the policy. Some observers connected the speculation to Coinbase’s stablecoin business, which plays an important role in the company’s financial structure through reserves supporting USD Coin.
Industry estimates indicate that Coinbase generated about $1.35 billion in stablecoin revenue during 2025. Much of that income comes from interest earned on U.S. Treasury assets backing the USDC reserve pool. As stablecoin usage grows, those reserves can expand and increase interest income.
Armstrong rejects lobbying claims
Coinbase leadership responded publicly once the claims spread widely online. CEO Brian Armstrong rejected the allegations and described them as misinformation. He stated that he has personally supported efforts to secure a Bitcoin de minimis tax exemption and emphasized that removing taxes from small Bitcoin transactions could help expand practical cryptocurrency payments.
Additionally, Coinbase Chief Policy Officer Faryar Shirzad also rejected the accusations and described the claims as inaccurate. The issue gained further visibility after Jack Dorsey asked Armstrong publicly on X whether Coinbase supported the Bitcoin tax exemption proposal. Armstrong replied that Coinbase supports the exemption and continues backing the policy.
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