(MENAFN- Crypto Breaking) Bitcoin advocates and industry leaders are increasingly calling for reforms to make cryptocurrency more practical for everyday use. At the forefront is Jack Dorsey, founder of Square , who has proposed a de minimis tax exemption for small BTC transactions to facilitate its adoption as a medium of exchange. Meanwhile, U.S. policymakers and crypto industry supporters are debating the potential impact of such tax exemptions on fostering innovation and maintaining competitive edge in the global crypto markets.

• Jack Dorsey advocates for a de minimis tax exemption on small Bitcoin transactions to boost adoption for daily payments.
• U.S. senator Cynthia Lummis has introduced legislation exempting BTC transactions under $300 from capital gains tax.
• Crypto industry leaders, including Coinbase 's tax VP, support tax exemptions to encourage retail crypto payments and innovation.
• Other jurisdictions like the UAE, Germany, and Portugal offer favorable tax regimes to attract blockchain companies, highlighting U.S. competitive challenges.

Jack Dorsey, the visionary behind Square and a recognized advocate of cryptocurrency, recently called for a de minimis tax exemption on small Bitcoin (BTC ) transactions. His aim is to facilitate Bitcoin's acceptance as everyday money, making it more practical for daily purchases.“We want Bitcoin to be everyday money ASAP,” Dorsey remarked after Square's latest integration of Bitcoin payment services into its merchant checkout and point-of-sale systems.

Source: Cynthia Lummis

Under current U.S. tax law, all Bitcoin transactions are taxed as capital gains, which discourages small-scale use due to the tax implications when Bitcoin appreciates in value. Advocates argue that removing this barrier-particularly for transactions below a certain threshold-could significantly boost BTC's utility as a peer-to-peer digital cash system, aligning with its original vision as outlined in Satoshi Nakamoto's whitepaper.

Crypto industry leaders continue to lobby for such tax reforms. During a recent Senate Committee hearing on crypto regulation amid the ongoing government shutdown, Lawrence Zlatkin, Coinbase 's vice president of tax, urged lawmakers to establish a de minimis exemption for crypto transactions up to $300. Zlatkin emphasized that this would incentivize retail crypto payments and help keep innovative payment solutions within the United States rather than moving offshore.

Several nations, including the UAE, Germany, and Portugal, have already adopted favorable tax policies to attract blockchain firms and crypto funds, creating a competitive landscape that leaves the U.S. at a disadvantage. The global crypto industry continues to push for reforms that could facilitate broader adoption and integration of digital assets into everyday financial transactions, reinforcing the importance of smart regulatory measures for sustained growth.

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