Overview

• Jack Dorsey called for a federal de minimis exemption for everyday Bitcoin payments as Block announced a Bitcoin payments rollout and a crypto-integrated wallet for small businesses using Square.
• Sen. Cynthia Lummis responded that she is “working on it” and is drafting legislation to establish a small-transaction exemption within a broader digital-asset tax framework.
• Coverage of the draft describes an exclusion for purchases of roughly up to $300 each, with an annual cap of $5,000, which would remove capital-gains paperwork for low-value spending.
• Under current IRS policy, crypto is treated as property, so even minor purchases create taxable events and record-keeping burdens for consumers and merchants.
• Reaction is divided, with advocates welcoming simpler spending rules and critics, including Sen. Elizabeth Warren, warning about lost revenue and questioning a Bitcoin-only approach.