Coinbase CEO Brian Armstrong has rejected claims circulating on X that the exchange privately opposed a proposed U.S. tax exemption for small Bitcoin transactions. As the allegation spread among crypto users, Coinbase executives responded in public and said the accusation was false, reiterating that the company supports the measure.
The dispute centers on a Bitcoin de minimis proposal
At issue is a proposed de minimis tax exemption that would remove capital gains taxes from small Bitcoin transactions. If adopted, the change would let people spend Bitcoin on routine purchases without having to calculate gains or losses every time the asset’s price moves.
Supporters of the proposal say the current tax treatment makes Bitcoin difficult to use for everyday payments. Each transaction can create a tax reporting burden. Removing that requirement could make it easier for consumers and merchants to use Bitcoin in ordinary payment activity.
Speculation grew as posts on X questioned Coinbase’s position
The backlash followed posts on X claiming that Coinbase had privately told lawmakers the exemption did not have strong political backing and would face difficulty in the legislative process. Those claims led some in the crypto community to question whether the company was actually behind the proposal.
Some observers tied that speculation to Coinbase’s stablecoin business. The report notes that stablecoin activity is an important part of Coinbase’s financial structure, particularly through reserves linked to USD Coin, or USDC. Industry estimates cited in the source say Coinbase generated about $1.35 billion in stablecoin revenue in 2025. A large share of that income came from interest on U.S. Treasury assets backing the USDC reserve pool. As stablecoin usage increases, reserve balances can grow and so can interest income.
Coinbase executives answered the allegation directly
Armstrong said the claims were misinformation and stated that he has personally supported efforts to secure a Bitcoin de minimis tax exemption. He added that removing taxes from small Bitcoin transactions could help expand real-world crypto payments.
Coinbase Chief Policy Officer Faryar Shirzad also denied the accusation and called it inaccurate. The issue drew more attention after Jack Dorsey publicly asked Armstrong on X whether Coinbase supported the Bitcoin tax exemption proposal. Armstrong replied that Coinbase supports the exemption and continues to back the policy.