Jack Dorsey demands clarity from Brian Armstrong, Coinbase CPO rejects argument against Bitcoin tax cut
Coinbase Chief Policy Officer Faryar Shirzad directly denied allegations that the company is lobbying against the proposed minimum tax exemption for Bitcoin.
“This is a complete lie @MartyBent. We have never lobbied against Bitcoin and never will. Never before,” Shirzad wrote on X in response to a post by Bitcoin podcaster Marty Bent. However, several people have asked Coinbase CEO Brian Armstrong for a public statement on this matter. Block’s Jack Dorsey specifically asked Mr. Armstrong for clarification, saying, “I hope this applies to De Minimis as well. @brian_armstrong?”
This denial came after Bent reported on March 11 that Coinbase reportedly told lawmakers that an exemption was not needed because “no one is using Bitcoin as money. The minimal exemption for Bitcoin would be DOA.” Bent claimed that the company is pushing for only stablecoins to promote its business.
Connor Brown, managing director of the Bitcoin Policy Institute, also acknowledged the related developments on the same day. “Over the past three months, we have seen a significant shift towards limiting the minimum exemption to stablecoins only,” Brown said. “BPI continues to meet with members of Congress to explain how this is a strategic failure for the United States.”
The minimal tax exemption eliminates capital gains taxes and IRS reporting requirements on small Bitcoin transactions, resolving long-standing friction surrounding Bitcoin’s adoption as a currency. Under current law, Bitcoin is treated as property, so all spending, whether it’s buying a coffee or paying a freelancer, is taxable and requires cost-based tracking and documentation. The bill, sponsored by Sen. Cynthia Lummis (R-Wyo.), would set a per-transaction threshold of $300, an annual cap of $5,000, and align routine Bitcoin payments more closely with small foreign currency exchanges.
Supporters say the changes are essential to remove tax frictions that currently hinder everyday use. Without this, the compliance burden would make Bitcoin impractical for everyday purchases and limit its ability to function as a medium of exchange.
Block Inc. has been one of the most vocal supporters of the company. In November 2025, the companies behind Cash App and Square launched the “Bitcoin is Everyday Money” campaign, explicitly calling for an exemption while rolling out Lightning Network tools that will allow Square merchants to accept Bitcoin payments with zero fees until 2027.
Lightning Network data published by Bitcoin Magazine directly debunks the argument that Bitcoin has no use as money. A February 19, 2026 article reported that monthly transaction volume reached $1.17 billion with 5.22 million transactions in November 2025, according to River Financial aggregates covering more than 50% of network capacity. Average transaction size increased to $223.
According to a report in Bitcoin Magazine on June 18, 2025, the network has approximately 1.5 million users and transaction volume of $1.5 billion. Block’s proprietary Lightning nodes delivered a 9.7% yield on actual payment routing, while Cash App processed 1 in 4 outbound Lightning transactions after a 7x increase in usage.
Block Bitcoin product leader Miles Suter summed up the company’s position as follows: “If Bitcoin becomes just digital gold, we have failed in our mission. Bitcoin payments validate Bitcoin. Bitcoin makes it real. Bitcoin is money.”
The exchange of claims highlights ongoing tensions between cryptocurrency-focused platforms and the companies building Bitcoin’s payment infrastructure. As Lightning volumes continue to grow, proponents argue that the exemption will encourage commercial adoption rather than provide passive income relief. Congress is still considering the proposal in the broader digital wealth tax reform debate.
The post Coinbase CPO Rejects Argument Against Bitcoin Tax Cut As Jack Dorsey Demands Clarity From Brian Armstrong originally appeared on Bitcoin Magazine and is written by Juan Galt.
