Key Highlights
- Allegations emerged claiming Coinbase lobbied against a Bitcoin de minimis tax exemption proposal.
- Faryar Shirzad, Chief Policy Officer, dismissed the accusation as completely false in a public X post.
- CEO Brian Armstrong similarly refuted the claims, describing them as entirely inaccurate.
- Podcaster Marty Bent asserted that Coinbase informed legislators the exemption served no purpose for Bitcoin.
- Proposed legislation from Senator Cynthia Lummis would establish a $300 per-transaction limit with $5,000 yearly maximum.
Executives at Coinbase have publicly disputed allegations suggesting the exchange lobbied against Bitcoin tax relief measures. CEO Brian Armstrong and Chief Policy Officer Faryar Shirzad both addressed the accusations through statements on X. The responses came after online claims emerged that Coinbase had opposed de minimis tax exemption provisions for Bitcoin payments.
Company Leadership Addresses Tax Policy Accusations
Faryar Shirzad directly confronted podcaster Marty Bent’s allegations on X. His statement read, “This is a total lie @MartyBent. We have never and will never lobby against Bitcoin. Ever.” The response came after Bent claimed Coinbase had worked against the de minimis exemption proposal.
Brian Armstrong subsequently weighed in on the controversy through the same social media platform. He characterized the allegation as “totally false” and firmly rejected any suggestion of anti-Bitcoin lobbying efforts. Multiple community members subsequently called for an official company declaration from the CEO.
Jack Dorsey, who leads Block, sought additional clarity from Armstrong. His message stated, “hope this is true for de minimis as well. @brian_armstrong?” The inquiry reflected ongoing questions surrounding the tax exemption proposal.
Bent published claims on March 11 suggesting Coinbase had conveyed to policymakers that the exemption lacked merit. According to Bent, company representatives argued, “No one is using bitcoin as money.” He further alleged Coinbase advocated for limiting tax relief exclusively to stablecoin transactions.
Bent subsequently revealed that three independent sources had corroborated the allegations. While declining to reveal their identities, he insisted that legislators had directly received Coinbase’s position on the matter.
Legislative Proposal and Broader Industry Position
The de minimis exemption under consideration would eliminate capital gains reporting requirements for smaller Bitcoin transactions. Supporters of the legislation aim to simplify tax compliance for routine Bitcoin payments. Senator Cynthia Lummis champions a bill establishing $300 as the per-transaction threshold.
The proposed measure would additionally impose a $5,000 yearly ceiling. Legislators crafted the framework to mirror existing treatment of minor foreign currency transactions. Current regulations require each Bitcoin transaction to trigger capital gains calculations.
Conner Brown, Managing Director at Bitcoin Policy Institute, commented on recent legislative developments. He noted that some lawmakers have gravitated toward restricting the exemption exclusively to stablecoins. Brown remarked, “BPI continues to meet with lawmakers to explain what a strategic blunder this would be for the U.S.”
Block Inc. has vocally championed the Bitcoin exemption measure. The company initiated its “Bitcoin is Everyday Money” initiative in November 2025. Simultaneously, Block deployed Lightning Network infrastructure for Square’s merchant network.
The organization implemented zero-fee Bitcoin transactions extending through 2027. Block marketed these capabilities through Cash App and Square platforms. Leadership emphasized that expanded adoption reinforces Bitcoin’s function as a medium of exchange.
Lightning Network statistics challenge assertions that Bitcoin sees minimal payment activity. Data from February 19, 2026, documented $1.17 billion in monthly transaction volume. Records showed 5.22 million transactions processed during November 2025.
River Financial compiled information representing more than half of total network capacity. Average transaction values reached $223. Previous metrics indicated 1.5 million active users and $1.5 billion in trading activity.
Miles Suter, Block’s Bitcoin product lead, emphasized the company’s philosophy. He stated, “If Bitcoin just becomes digital gold, we failed the mission.” He continued, “Bitcoin payments validate Bitcoin. They make it real. Bitcoin is money.”
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