Coinbase CPO Rejects Claims Against Bitcoin Tax Exemption As Jack Dorsey Seeks Clarification From Brian Armstrong
Coinbase Chief Policy Officer Faryar Shirzad has directly denied allegations that the company is seeking an exemption from the proposed de minimis tax on Bitcoin.
Responding to X on a post by Bitcoin podcaster Marty Bent, Shirzad wrote: “This is a complete lie @MartyBent. We have never and will never want to fight Bitcoin. Ever.” Although many people are asking for a public statement from Coinbase CEO Brian Armstrong on this matter. The Block’s Jack Dorsey called Armstrong directly for clarification, saying “I hope this is true even in de minimis. @brian_armstrong?”.
The denial comes after Bent reported on March 11 that Coinbase told lawmakers the exemption was unnecessary because “No one uses bitcoin as money. The de-minimis exemption for bitcoin is a hand that will be DOA.” Bent said that the company wants the stablecoins treatment only to improve its business.
Bitcoin Policy Institute Executive Director Conner Brown confirmed the related development that day. “I can confirm that in the last three months there has been a strong move on the Hill to limit the de minimis exemption to stablecoins only,” Brown said. “BPI continues to meet with lawmakers to explain to them how wrong this would be for the US”
Exemption from the deminimis tax would eliminate capital gains tax and IRS reporting requirements on Bitcoin mini-transactions, resolving the long-standing controversy over bitcoin’s acceptance as a currency. Under current law, Bitcoin is considered an asset, so every use – even buying a coffee or paying a freelancer – creates a taxable event that requires a cost base to track and fill out paperwork. The law supported by Sen. Cynthia Lummis (R-WY) would set a $300-per-transaction threshold with an annual cap of $5,000, to align Bitcoin payments more closely with small foreign currency transactions.
Proponents argue that the change is necessary to remove tax inconsistencies that currently discourage everyday consumption. Without it, compliance burdens make Bitcoin ineffective for mainstream purchases and limit its function as a medium of exchange.
Block Inc. be a very vocal business supporter. In November 2025 the company behind the Cash App and Square launched its “Bitcoin is Everyday Money” campaign, clearly calling for emancipation while releasing Lightning Network tools that allow Square merchants to accept Bitcoin payments without fees until 2027.
The Lightning Network data published by Bitcoin Magazine directly undermines the claims that Bitcoin does not see use as money. An article dated February 19, 2026 reported $1.17 billion in monthly volume for a total of 5.22 million transactions in November 2025, according to River Financial’s consolidated figures comprising more than 50% of the network’s volume. The average transaction size increased to $223.
A June 18, 2025 report by Bitcoin Magazine indicated that the network has reached nearly 1.5 million users and $1.5 billion in trading volume. Block’s Lightning node generated 9.7% of real payment transactions, while the Cash App hosted one in four Lightning transactions after a 7x increase in usage.
Block Bitcoin product leader Miles Suter summed up the company’s position: “If Bitcoin becomes digital gold, we’ve failed the mission. Bitcoin payments validate Bitcoin. They make it real. Bitcoin is money.”
The exchange of claims highlights the ongoing tension between crypto-focused platforms and the companies that build Bitcoin’s payment infrastructure. As the volume of lightning continues to rise, advocates maintain that the exemption will accelerate commercial adoption rather than provide unearned relief. Congress is still considering the proposal amid broader discussions on digital asset tax reform.
