Brian Armstrong, CEO of Coinbase, has countered allegations that his company’s lobbyists are working against a Bitcoin tax exemption in Washington, labeling the claims as entirely untrue.

The controversy has involved advocates for Bitcoin, tax attorneys, and cryptocurrency lobbyists, stirring a broader discussion on the representation of major companies in crypto within Congress.

Background on the Allegations

The accusations originated from Truth for the Commoner (TFTC), a Bitcoin-focused media group with nearly 100,000 followers on X. They posted on March 11, asserting that Coinbase instructed legislators that “no one is using Bitcoin as money” and denounced the proposed de minimis tax exemption for Bitcoin as “DOA.”

According to TFTC, Coinbase has a vested interest in opposing this tax exemption. They claimed that the exchange accrued $1.35 billion in stablecoin revenues over the past year, primarily through interest on U.S. Treasuries backing USDC.

TFTC further suggested that a Bitcoin tax exemption would enhance its attractiveness as a payment method, diverting users from Coinbase’s stablecoin offerings.

Last year, Senator Cynthia Lummis introduced tax legislation for digital assets, advocating for a de minimis exemption on crypto transaction gains of up to $300. In the House, a similar bill caps at $200, focusing solely on stablecoins.

Armstrong addressed the allegations directly, stating:

“Not sure where you’re getting this misinformation (perhaps you can share?) but it’s totally false. I’ve spent a bunch of time lobbying for Bitcoin’s de minimis tax exemption, and will continue doing so.”

Despite Armstrong’s comments, TFTC co-founder Mart Bent stood firm, saying:

“I have sources that say otherwise, not you personally but your team and/or lobbyists.”

Bent also questioned if Armstrong would withdraw support from market structure legislation without a Bitcoin exemption, similar to his previous withdrawal from supporting the CLARITY Act over disputes concerning stablecoin profit.

Complex Policy Issues

Tax lawyer Jason Schwartz, known as “CryptoTaxGuy” on X, provided context regarding the Armstrong vs. TFTC debate. He suggested that the conversation was conflating several policy matters, including a personal-use de minimis rule and stablecoin tax reporting changes. Schwartz argued that differing market players will have unique priorities and that this shouldn’t be interpreted as an attack on one another’s proposals.