Jack Dorsey Wants A Tax Exemption On Everyday Bitcoin Transactions — Cynthia Lummis Points Toward A Bill She Introduced

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.

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.