A new controversy has emerged within the cryptocurrency community, particularly on “crypto Twitter,” involving US-based exchange Coinbase (COIN).
Rumors are circulating that the exchange is actively opposing the proposed Bitcoin (BTC) de minimis tax exemption, allegedly to promote a regulatory framework that favors stablecoins over Bitcoin.
Coinbase’s Alleged Lobbying
As the US government seeks to establish a comprehensive regulatory framework for the crypto industry—especially following Donald Trump’s re-election campaign—tax exemptions have become a focal point in congressional discussions.
In a March 4 interview, Senator Cynthia Lummis mentioned that both the House Ways and Means Committee and the Senate Finance Committee are contemplating a $300 exemption, which would allow crypto users to utilize Bitcoin for transactions without incurring capital gains taxes.
“We’re trying to figure out the appropriate criteria for distinguishing when a transaction—such as a sale of Bitcoin—should be subject to capital gains taxes and when it can be used as a straightforward medium of exchange, akin to the US dollar,” explained Lummis.
However, industry insights shared by Marty Bent, managing partner at Ten31, indicate that Coinbase may be lobbying against such exemptions. Bent claimed on social media that the exchange is attempting to “nuke” the Bitcoin exemption while seeking to support stablecoins exclusively.
Allegedly, Coinbase representatives have informed legislators that “No one is using Bitcoin as money. A de minimis exemption for Bitcoin is a handout that will be DOA [dead on arrival].”
Accusations Fly
This revelation has garnered significant attention from leaders within the cryptocurrency sector. Conner Brown, Managing Director at the Bitcoin Policy Institute, expressed concern over the potential implications of such a move.
He stated that there has been a noticeable shift in legislative discussions favoring stablecoin-only exemptions over the past three months.
Brown emphasized that missteps in this area could represent a grave error for the US policy landscape, urging his peers to remain vigilant. “We’ve invested years in this fight, and we can’t let it slip away at the last moment,” he asserted.
The response from the crypto community has been largely critical, with some participants accusing Coinbase of aligning with traditional banking interests. Some have gone so far as to characterize the exchange as “just another branch of the fractional reserve banking system.”
As of now, Coinbase has not provided any official confirmation or response regarding the rumors circulating about its lobbying activities. It remains to be seen whether the exchange will address these allegations or clarify its stance in the ongoing discourse about Bitcoin and stablecoins.
Featured image from OpenArt, chart from TradingView.com
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