Crypto sales are deemed taxable under the current legislation in the United States, but there are discussions among lawmakers on possible exemptions for minor transactions.
The most significant barrier to using Bitcoin as a payment method is tax policy, rather than the scalability technology decreasing transaction times and costs. This insight comes from Pierre Rochard, an executive at Strive, a Bitcoin treasury firm.
“Here’s a metaphor: the best athlete can win against the worst athlete 100% of the time if the best athlete plays. It drops to 0% if he doesn’t play and lets the weak athlete win.”
Translation: Rochard emphasizes that without participation, Bitcoin cannot compete as a payment method.
In December 2025, the Bitcoin Policy Institute highlighted the absence of a de minimis tax exemption for small Bitcoin transactions.
Currently, every transfer of BTC as payment is taxed, which complicates its function as a medium of exchange.
US lawmakers are contemplating restricting the de minimis tax exemption to overcollateralized dollar-pegged stablecoins. This proposal has incited concern among Bitcoin supporters.
Community Response to Lack of De Minimis Exemptions
In July 2025, Senator Cynthia Lummis from Wyoming, a supporter of the crypto sector, submitted a bill advocating for a de minimis tax exemption on digital asset transactions of $300 or less.
The bill also suggested a $5,000 annual limit on exemptions and provisions to exempt cryptocurrencies used for charitable contributions.
Lummis’ proposal includes deferring income earned through staking on proof-of-stake networks or mining proof-of-work cryptocurrencies until those assets are sold.
Jack Dorsey, the founder of Square, which integrated Bitcoin payments into its systems, has called for tax exemptions on small BTC transactions.
“We want BTC to be everyday money ASAP.”
Translation: Dorsey is advocating for Bitcoin to become a common payment method.
Conversely, others like Marty Bent express that the proposed exemptions for stablecoins are unreasonable.
