Bitcoin Advocates Press US Lawmakers on Stablecoin Tax Rules

Leading cryptocurrency and Bitcoin advocacy groups are ramping up efforts to lobby US lawmakers, urging them to clarify and modernize tax rules surrounding stablecoins. The central focus of their campaign is the establishment of a robust ‘de minimis’ exemption to exempt small-value transactions from capital gains reporting, a hurdle currently viewed as paralyzing mainstream adoption.

Under current US tax code, any transaction involving cryptocurrency, even stablecoins pegged 1:1 to the US dollar (such as USDC or USDT), can trigger a taxable event if a minor gain or loss occurs due to short-term fluctuation. Advocates argue that this requirement—mandating detailed capital gains tracking for every mundane transaction, like purchasing a coffee—renders stablecoins unusable for everyday commerce.

Organizations like the Bitcoin Policy Institute and Coin Center are pressing members of the House Ways and Means Committee and the Senate Finance Committee to adopt a high exemption threshold, often proposing a limit of $200 per transaction, below which no capital gains reporting would be required. They contend that stablecoins, designed for price stability, should not face the same onerous reporting requirements applied to volatile assets like Bitcoin (BTC).

Industry representatives stress that regulatory clarity is critical for the US to maintain global competitiveness in digital finance. They argue that easing the tax burden on stablecoin use would significantly encourage their utilization for payments, reinforcing the global dominance of the digital dollar. Lawmakers are currently reviewing various proposals aimed at updating the digital asset framework, with advocates pushing for the stablecoin tax exemption to be a priority in pending bipartisan legislation.

Source: Bitcoin Advocates Press US Lawmakers on Stablecoin Tax Rules