Coinbase Chief Policy Officer Faryar Shirzad directly denied allegations that the company is lobbying against a proposed de minimis tax exemption for Bitcoin.
Responding on X to a post by Bitcoin podcaster Marty Bent, Shirzad wrote: “This is a total lie @MartyBent. We have never and will never lobby against Bitcoin. Ever.” Though multiple people are asking for a public statement from Coinbase CEO Brian Armstrong on the matter. Jack Dorsey of Block specifically called Armstrong out for clarification, saying “hope this is true for de minimis as well. @brian_armstrong?”.
UPDATE 2: Bent claims to have three different sources on the rumor.
UPDATE: Armstrong responded with a denial of the rumor as well. calling it “totally false”.
The denial comes after Bent reported on March 11 that Coinbase is allegedly telling lawmakers the exemption is unnecessary because “No one is using bitcoin as money. A de-minimis exemption for bitcoin is a hand out that will be DOA.” Bent claimed the company is pushing for stablecoins-only treatment to advance its own business.
Bitcoin Policy Institute Managing Director Conner Brown confirmed a related development the same day. “I can confirm that over the past three months there’s been a strong shift on the Hill to limiting the de minimis exemption to stablecoins only,” Brown said. “BPI continues to meet with lawmakers to explain what a strategic blunder this would be for the U.S.”
The de minimis tax exemption would eliminate capital-gains taxes and IRS reporting requirements on small Bitcoin transactions, solving a long standing friction for the adoption of bitcoin as currency. Under current law, Bitcoin is treated as property, so every spend — even buying coffee or paying a freelancer — creates a taxable event that requires tracking cost basis and filing paperwork. Legislation backed by Sen. Cynthia Lummis (R-WY) would set a $300-per-transaction threshold with a $5,000 annual cap, aligning routine Bitcoin payments more closely with minor foreign-currency exchanges.
Supporters argue the change is essential to remove tax friction that currently discourages everyday use. Without it, compliance burdens make Bitcoin impractical for routine purchases and limit its function as a medium of exchange.
Block Inc. has been the most vocal corporate supporter. In November 2025 the company behind Cash App and Square launched its “Bitcoin is Everyday Money” campaign, explicitly calling for the exemption while rolling out Lightning Network tools that let Square merchants accept Bitcoin payments with zero fees through 2027.
Lightning Network data published by Bitcoin Magazine directly undercuts claims that Bitcoin sees no use as money. A February 19, 2026 article reported $1.17 billion in monthly volume across 5.22 million transactions in November 2025, according to aggregated figures from River Financial covering more than 50% of network capacity. Average transaction size rose to $223.
A June 18, 2025 Bitcoin Magazine report showed the network had reached roughly 1.5 million users and $1.5 billion in trading volume. Block’s own Lightning node produced a 9.7% yield routing actual payments, while Cash App handled one in four outbound Lightning transactions after 7x usage growth.
Block Bitcoin product lead Miles Suter summed up the company’s stance: “If Bitcoin just becomes digital gold, we failed the mission. Bitcoin payments validate Bitcoin. They make it real. Bitcoin is money.”
The exchange of claims highlights ongoing tensions between crypto focused platforms and companies building payment infrastructure for Bitcoin. With Lightning volume continuing to climb, advocates maintain the exemption would accelerate commercial adoption rather than provide unearned relief. Congress is still weighing the proposal within broader digital-asset tax reform discussions.