January 14 News, Bitcoin advocacy groups are stepping up lobbying efforts with U.S. lawmakers to modify existing and proposed stablecoin tax rules, extending the minimum tax exemption from stablecoins to Bitcoin and major network tokens. The organizations warn that if tax incentives are limited to dollar-pegged stablecoins, it will not address the compliance burdens faced by many U.S. users when using cryptocurrencies for everyday payments.
In summary, the Bitcoin Policy Institute, in collaboration with Bitcoin Voter, Blocks, Crypto Council, Digital Chamber, MoonPay, River, and other organizations, recently sent a letter to Senate Finance Committee Chairman Michael Crapo and House Ways and Means Committee Chairman Jason Smith. The letter states that the current proposals considered by Congress may only provide the minimum tax exemption for payment stablecoins that meet the GENIUS Act standards, completely excluding Bitcoin, which would undermine the original intent of simplifying tax reporting through reform.
Under current rules, the IRS still treats cryptocurrencies like Bitcoin as property, meaning even small transactions require cost basis and profit/loss calculations. The advocacy groups believe this approach is not conducive to the widespread adoption of Bitcoin payments. They recommend granting near-cash tax treatment to compliant stablecoins and including Bitcoin and major network tokens in the exemption system.
Specifically, the alliance proposes using a $25 billion market cap as the entry threshold for network tokens, with a tax-free limit of $600 per transaction and $20,000 annually, balancing compliance and regulatory needs. Data shows that approximately 45 million Americans currently hold cryptocurrencies, with Bitcoin dominating; in 2024, about 7 million U.S. users are expected to use Bitcoin or other network tokens for payments, making the U.S. one of the largest markets for Bitcoin payments.
Additionally, with the requirement to report digital asset transactions using Form 1099-DA after 2025, industry experts generally believe that without quickly adjusting the minimum tax rules, businesses and individuals will face higher compliance costs and audit risks. This is a key reason why Bitcoin advocates have been pushing for tax reform continuously into 2026.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
FTX to Compensate at 2022 Coin Prices, SBF's Parents' Defense of Son Rejected by Creditors
FTX founder SBF's parents argued in a CNN interview that customer funds were never lost, claiming full compensation had been made. However, creditors countered that the compensation was calculated based on cryptocurrency prices at the time of bankruptcy in 2022, meaning they actually lost the potential for asset appreciation. SBF is now sentenced to 25 years, and the possibility of a pardon is also extremely low.
MarketWhisper6m ago
Gate Total Reserve Ratio Reaches 122%, BTC Reserve Ratio Rises to 147%
Gate released a reserve report on March 23, showing that as of March 16, 2026, the total reserve ratio reached 122%. BTC reserve ratio is 147%, ETH surplus reserve is 22.75%, USDT surplus is 1.79%, and GUSD is as high as 196.50%. Both GT and XRP reserve ratios exceed 100%.
GateNews9m ago
Swiss Private Bank Banque Syz Experiences Family Split Over Bitcoin Strategy Rift, Founder's Son Resigns
Swiss private bank Banque Syz SA in Geneva has erupted into a generational family split due to major disagreements between founder Eric Syz and his son Marc Syz over cryptocurrency strategy. Marc has departed along with business partner Richard Byworth, planning to advance a dual listing for bitcoin treasury company Future Holdings AG.
GateNews39m ago
US Treasury yields rose to 4.41%, stock market correction approaching, Bitcoin fell from 90,000 USD to 60,000 USD at one point
Bitcoin has experienced a sharp pullback, with traditional financial markets showing signs of following suit. Rising US Treasury yields are pushing up borrowing costs, leading to decreased risk appetite in the stock market. Bitcoin's price is currently oscillating between $65,000 and $75,000, with market concerns persisting over future volatility. Investors need to monitor the correlation between interest rates and risk assets.
GateNews1h ago
