Sen. Cynthia Lummis (R-Wyo.) backed Block Inc. (NYSE:XYZ) CEO Jack Dorsey’s call for tax relief on Bitcoin (CRYPTO: BTC) transactions on Thursday, citing a supportive legislation she introduced earlier.
‘De Minimis Tax Exemption’
Dorsey advocated for a “de minimis tax exemption” on everyday BTC payments, backing an argument that routine purchases, like buying coffee, shouldn’t trigger capital gains.
Lummis quoted his post, saying, “If only we had a ₿ill for that… Oh, wait,” suggesting that a bill she introduced in June already addresses these concerns.
What Does Lummis’ Bill Say?
The bill seeks to exempt gains from small transactions, up to $300 per transaction, with an annual cap of $5,000 per individual. The legislation has been read twice and referred to the Senate Committee on Finance, according to Congress.gov.
Despite this, several X users expressed concern that the limit was too “low,” while others argued that cryptocurrency transactions should not be taxed at all.
See Also: Bitcoin (BTC) Price Predictions: 2025, 2026, 2030
The IRS treats cryptocurrency assets like property, not currency. If you exchange virtual currency for goods and services, you likely have a taxable event. By using cryptocurrency to pay for goods and services, you may trigger a capital gain or loss.
Learn More About Crypto Taxation Here
The discussions come after Block announced a BTC payments feature for its Square point-of-sale system, letting retailers accept, hold, and convert a portion of card sales into the apex cryptocurrency. The merchants won’t have to pay processing fees on the transactions until 2027.
Price Action: At the time of writing, BTC was exchanging hands at $121,151.37, down 0.58% in the last 24 hours, according to data from Benzinga Pro.
Block shares were down 0.31% in pre-market trading after closing 0.32% lower at 80.85 during Thursday’s regular trading session.
The stock exhibited a very high growth score — a measure of the stock’s combined historical expansion in earnings and revenue across multiple periods — but lagged in Value and Quality categories. Visit Benzinga Edge Stock Rankings to compare it with Coinbase Global Inc. (NASDAQ: COIN and other cryptocurrency-linked stocks.
Read Next:
Photo courtesy: Shutterstock
