Particle.news
Download on the App Store

Dorsey Presses Bitcoin Tax Fix as Square Enables BTC Checkout and Lummis Points to Bill

The proposal would exempt small purchases from capital-gains reporting through a roughly $300-per-transaction threshold with a $5,000 annual cap.

Overview

  • Square rolled out Bitcoin payment acceptance for merchants on October 9 with no processing fees through 2026 across its checkout and point-of-sale systems.
  • Jack Dorsey publicly called for a federal de minimis exemption for everyday BTC transactions, saying he wants Bitcoin to function as everyday money.
  • Senator Cynthia Lummis replied that she is working on it and highlighted Senate Bill 2207, which has been referred to the Senate Finance Committee.
  • Under current IRS rules treating crypto as property, even small purchases trigger taxable capital gains, creating a paperwork burden for consumers and merchants.
  • Coinbase tax executive Lawrence Zlatkin urged senators at an October Finance Committee hearing to codify the exemption, while critics including Senator Elizabeth Warren warn of loopholes and tax enforcement risks.