Coinbase Chief Policy Officer Faryar Shirzad directly denied claims that the company is lobbying against a proposed de minimis tax exemption for Bitcoin.
In response to X on 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.” Although several people are asking for a public statement from Coinbase CEO Brian Armstrong on the matter. Block’s Jack Dorsey 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 also responded with a denial of the rumor. calling it “completely false”.
The rejection comes after Bent reported on March 11 that Coinbase is reportedly telling lawmakers that the exemption is unnecessary because “No one uses bitcoin as money. A de minimis exemption for bitcoin is a hand deal that will be DOA.” Bent claimed that the company is pushing for stablecoin treatment to promote its own business.
Bitcoin Policy Institute Executive Director Conner Brown confirmed a related development on the same day. “I can confirm that over the last three months there has been a strong shift on the Hill to limit 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 United States”
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 a currency. Under current law, Bitcoin is treated as property, so any spending — even buying coffee or paying a freelancer — creates a taxable event that requires tracking costs and filing paperwork. Legislation sponsored by Sen. Cynthia Lummis (R-WY) would set a threshold of $300 per
Supporters argue that the change is essential to remove tax friction that currently discourages daily 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 the 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 without fees through 2027.
Lightning Network data published by Bitcoin Magazine directly undercuts claims that Bitcoin sees no use as money. An article on February 19, 2026 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. The average transaction size increased to $223.
A Bitcoin Magazine report from June 18, 2025 indicated that the network had reached around 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 the Cash App handled one in four outgoing Lightning transactions after 7x growth in usage.
Block Bitcoin product manager Miles Suter summed up the company’s position: “If Bitcoin just 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 tensions between crypto-focused platforms and companies building payment infrastructure for Bitcoin. As Lightning volume continues to rise, proponents argue that the exemption would accelerate commercial adoption rather than provide undeserved relief. Congress is still weighing the proposal in broader discussions on digital asset tax reform.