A report from the Cornell Brooks School Tech Policy Institute said the United States could see higher net federal revenue over a 10-year period if it adopts a de minimis exemption for Bitcoin and other cryptocurrency payments under $300. The estimate puts the revenue gain at $859 million, with a range of $172 million to $2.58 billion, based on an assumption that the number of digital asset payment users stays flat at 5.4 million. The report argues that current capital gains taxes and reporting requirements on small transactions are holding back everyday Bitcoin payments. It says removing transaction-level tax and reporting burdens could increase Bitcoin payment activity and demand, while near-term effects on Bitcoin prices and tax receipts may remain limited at current adoption levels. Over a longer horizon, the impact would depend on the scale of payment usage. The report comes as Senator Cynthia Lummis has proposed S. 2207, a bill that would exempt qualifying payments from capital gains tax, with an annual cap of $5,000 in tax-free capital gains. Other legislative proposals would narrow the exemption to regulated stablecoins, and discussions are still underway.
A report from the Cornell Brooks School Tech Policy Institute (BTPI) said the United States could increase net federal revenue over 10 years if it adopts a de minimis exemption for Bitcoin and cryptocurrency payments under $300.
BTPI estimated a net revenue gain of $859 million over a decade, with a range of $172 million to $2.58 billion. The estimate assumes the number of digital asset payment users remains unchanged at 5.4 million.
Bill proposal and scope of exemption
Senator Cynthia Lummis has proposed S. 2207, a bill that would exempt qualifying payments from capital gains tax. The proposal would set an annual cap of $5,000 in tax-free capital gains.
Other legislative initiatives would limit the exemption to regulated stablecoins, and that discussion is still ongoing.
What BTPI said
According to BTPI, current capital gains taxes and reporting requirements for small transactions are discouraging everyday Bitcoin payments. The report said removing transaction-level tax and reporting burdens could increase Bitcoin payment activity and demand.
At current adoption levels, BTPI said the near-term effect on Bitcoin prices and tax revenue may be limited. Over the longer term, the outcome would depend on factors including the scale of payment usage.
The report was cited by Bitcoin.com News.
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