The post US Lawmakers May Limit De Minimis Tax Exemptions to Stablecoins, Excluding Bitcoin appeared on BitcoinEthereumNews.com.

US lawmakers are considering de minimis tax exemptions primarily for dollar-pegged stablecoins, excluding Bitcoin transactions below certain thresholds, according to Bitcoin Policy Institute advocates. This could limit Bitcoin’s use as everyday currency and hinder its adoption as a medium of exchange. De minimis exemptions aim to waive taxes on small crypto transactions to encourage broader use. Bitcoin transactions under $300 could benefit, but current proposals focus on stablecoins only. Wyoming Senator Cynthia Lummis’s bill includes a $5,000 annual limit on tax-free crypto sales and exemptions for mining and staking rewards. Discover how de minimis tax exemptions for stablecoins could reshape crypto regulations in 2025. Learn why Bitcoin advocates urge inclusion for BTC to boost its role as digital cash—explore impacts now. What is the De Minimis Tax Exemption for Cryptocurrencies? De minimis tax exemption refers to a proposed policy that would allow small cryptocurrency transactions, typically under $300, to be exempt from capital gains taxes to facilitate everyday use. Introduced by Wyoming Senator Cynthia Lummis in July, the bill sets a $5,000 annual cap on tax-free transactions and includes relief for digital assets used in charitable donations, as well as tax deferrals for earnings from proof-of-work mining or staking. This approach aims to reduce barriers to crypto adoption without overly complicating tax enforcement. Why Are Stablecoins Prioritized Over Bitcoin in Current Proposals? Bitcoin Policy Institute representatives have highlighted that US lawmakers’ de minimis tax legislation appears limited to stablecoins, potentially overlooking Bitcoin’s role in peer-to-peer transactions. Conner Brown, the institute’s head of strategy, described the exclusion of Bitcoin as a “severe mistake” in a public statement, emphasizing that small BTC transactions need similar relief to promote its function as a medium of exchange. Stablecoins, pegged to the US dollar, face less volatility, making them seemingly less in need of exemptions,…

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Filed under: News - @ December 19, 2025 1:28 am