Coinbase has denied lobbying towards a de minimis tax exemption for bitcoin (BTC), regardless of a vehement declare by podcaster and Ten31 managing companion Marty Bent that it has.
Bent reported on March 11 that the change was quietly telling lawmakers {that a} de minimis tax exemption for BTC funds was pointless.
Based on Bent and his “multiple” Capitol Hill sources, Coinbase lobbyists allegedly informed legislators “no one is using BTC as money” and that such a tax change could be “dead on arrival.”
He additionally claimed that the corporate solely needed the exemption to use to particularly regulated, dollar-pegged tokens just like the Coinbase-supported USDC.
Coinbase Chief Coverage Officer Faryar Shirzad denied the allegation flatly. “This is a total lie, Marty Bent. We have never and will never lobby against Bitcoin. Ever.”
Kara Calvert, Coinbase’s VP of US coverage, known as the declare “categorically false.” She mentioned Coinbase has advocated for a de minimis exemption protecting “all digital assets,” together with BTC, since 2017.
Coinbase Chief Authorized Officer Paul Grewal additionally known as the allegation a lie whereas Nic Carter dismissed Bent’s allegation out of hand.
Armstrong confirmed.
Disagreeing, Conner Brown, head of technique on the Bitcoin Coverage Institute, partially reiterated Bent’s concern.
With out naming Coinbase straight, “I can confirm that over the past three months, there’s been a strong shift on the Hill to limiting the de minimis exemption to stablecoins only,” Brown wrote.
Pierre Rochard additionally thinks Coinbase isn’t telling the entire fact. “Bitcoin should be tax exempt. It’s really sad to see Brian Armstrong lobbying against that,” he wrote.
Even when Grewal known as him out for defamation, Rochard caught to his story, “Wait until you see the bill.”
A wrinkle in Coinbase’s tax denial
Coinbase has actually been clear that its stance is that it’s by no means advocated towards a bitcoin de minimis tax exemption. Nonetheless, Coinbase’s stablecoin enterprise, and a complicated publish by Calvert, barely complicates its denial.
Recall that Coinbase earned $1.3 billion in stablecoin income in 2025, largely from curiosity on the US Treasuries backing USDC. A de minimis exemption protecting BTC solely would permit individuals spend one non-USDC digital asset tax-free for on a regular basis purchases, thereby making BTC a considerably direct competitor to USDC.
Nonetheless, Coinbase’s Calvert says that Coinbase has been advocating for a crypto-wide, all-asset exemption for years.
She additionally claimed that “Stablecoins don’t realize gains or losses” as a result of “they are stable,” which is actually not all the time true, however is her weird declare nonetheless.
If stablecoins had been certainly “stable” and assured to carry their $1 peg, (ignoring the truth that USDC has traded within the $0.80s many instances), it will be absurd for Coinbase to advocate for a stablecoin-only tax exemption for USDC stablecoins which, in Calvert’s view, “don’t realize gains or losses” anyway.
In reality, USDC has traded in a variety from at the very least $0.87 to $1.09 on Kraken, together with tons of of thousands and thousands of {dollars} in settled transactions beneath $0.98.
Even decrease and better USDC costs have settled on different buying and selling venues.
I’m not strolling something again. It’s a lie. We’ve by no means lobbied towards BTC.
— Paul Grewal (@iampaulgrewal) March 12, 2026
Coinbase desires to win on Capitol Hill
Bent’s unique publish accuses one of many world’s largest and longest-running BTC exchanges of attempting to “nuke” any hopes for a BTC minimis tax exemption.
He described, citing three unnamed “sources,” Coinbase pushing for an exemption on stablecoins solely.
Though Coinbase has clearly denied the allegation, the exemption beneath dialogue, backed by Senator Cynthia Lummis, would set a $300 tax threshold per transaction with a $5,000 annual cap. It could thereby eradicate capital positive factors taxes on small crypto funds.
Whether or not the exemption will ever be enacted into IRS code, and to which digital belongings it will ever apply, is the energetic topic of Capitol Hill debate.
Underneath present legislation, the IRS treats all digital belongings as property, so each sale, together with the de facto sale of crypto whereas buying a superb or service, triggers a tax reporting obligation.
Coinbase contributed roughly $69 million to the Fairshake tremendous PAC throughout the 2024 cycle, greater than another donor. One other tracker reveals Coinbase political contributions exceeding $59 million.
When Coinbase lobbies, Washington DC listens.
