Jack Dorsey, the founder of the payment platform Square, has called for a change in how small Bitcoin
According to a post on X, the suggestion is to introduce a tax exemption for minor Bitcoin transactions. This would help make the cryptocurrency more practical for regular purchases.
Currently, using Bitcoin in the US for any kind of transaction can trigger a capital gains tax. That is because the IRS treats each Bitcoin use as a taxable event.
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If the value of the Bitcoin has gone up since it was bought, users must calculate the gain and report it.
Dorsey’s comments came after Square added Bitcoin payment options to its merchant checkout systems. He stated that the goal is to make Bitcoin usable like regular money as soon as possible.
Recently, Senator Cynthia Lummis of Wyoming introduced a bill that would exempt small Bitcoin payments, up to $300, from being taxed, with a total yearly limit of $5,000 in exempted transactions.
This kind of exemption is known as a “de minimis” rule and is already used in other areas of tax law to reduce burdens on very small amounts.
Supporters argued that it could help Bitcoin function as a form of cash, similar to the original purpose described in the Bitcoin whitepaper by its creator, Satoshi Nakamoto. They noted that if the government removes tax barriers for low-value transactions, more people and businesses will use Bitcoin for small purchases.
Meanwhile, Telegram founder Pavel Durov discussed the origin of his personal wealth during an appearance on Lex Fridman’s podcast on September 30. What did he say? Read the full story.
