Jack Dorsey, founder of the payment firm Square, has proposed a tax exemption for small Bitcoin ( BTC) transactions to facilitate its use as a practical payment method.

“We want Bitcoin to be everyday money ASAP,” Dorsey declared on Wednesday after Square enhanced its Bitcoin payment options for merchants.

His statement aligns with Wyoming Senator Cynthia Lummis’s earlier introduction of a tax provision aimed at exempting BTC transactions of $300 or less from capital gains tax, with a total annual cap of $5,000.

Under current U.S. law, all Bitcoin dealings incur capital gains tax, which users must pay if BTC’s value exceeds the initial purchase price, thereby curbing its effectiveness as a currency for everyday transactions.

Bitcoin proponents are advocating for tax alleviations on minor BTC transactions to boost adoption as a peer-to-peer electronic cash system, as originally outlined in Satoshi Nakamoto’s whitepaper, while also serving as a value-holding asset.

Support for Tax Exemptions from Industry Leaders

The U.S. Senate Committee on Finance addressed crypto tax regulations amid the recent U.S. government shutdown in October.

Lawrence Zlatkin, Coinbase’s Vice President of Tax, urged that small crypto trades up to $300 should be tax-exempt, arguing it would incentivize retail crypto payments and ensure innovation remains within the U.S., versus relocating abroad.

Various countries offer favorable taxation for digital assets to attract investment, including the UAE, Germany, and Portugal, presenting a competitive challenge to U.S. crypto enterprises.

Related: U.S. lawmakers confront crypto tax policies during the government shutdown