Coinbase CEO Brian Armstrong denied claims the exchange lobbied against a Bitcoin de minimis tax exemption, calling the allegations “totally false.”
TLDR KEYPOINTS
- Marty Bent alleges Coinbase told lawmakers to limit de minimis tax relief to stablecoins, citing 3 Capitol Hill sources
- Armstrong, CPO Shirzad, and VP Calvert all denied the claims publicly on X
- Coinbase earned $1.35B from stablecoins in 2025; the PARITY Act would exclude Bitcoin from tax relief
Bent Alleges Coinbase Pushed Stablecoin-Only Exemption
Ten31 managing partner Marty Bent published the allegation on March 11.
He cited three independent Capitol Hill sources.
Per Bent, Coinbase lobbyists told lawmakers “no one is using bitcoin as money.”
The alleged pitch: a Bitcoin de minimis exemption would be “DOA,” dead on arrival.
Instead, Coinbase allegedly pushed to limit the tax break to “regulated dollar-pegged stablecoins like USDC.”
Armstrong, Shirzad, Calvert All Deny
CPO Faryar Shirzad fired back on X: “This is a total lie. We have never and will never lobby against Bitcoin. Ever.”
VP of U.S. policy Kara Calvert called the claim “categorically false.”
Calvert said Coinbase has backed a de minimis exemption for “all digital assets” since 2017.
Armstrong responded after Block CEO Jack Dorsey publicly pressed him for clarification.
Source: @brian_armstrong on X
$1.35B Stablecoin Revenue Raises Incentive Questions
Coinbase earned $1.35 billion in stablecoin revenue in 2025, up 48% year-over-year.
The bulk comes from Treasury yield on USDC reserves via its Circle partnership.
The bipartisan PARITY Act from Reps. Miller and Horsford limits de minimis to regulated stablecoins under $200.
That excludes Bitcoin, departing from Sen. Lummis’s proposal: $300 per transaction, $5,000 annual cap.
BPI managing director Conner Brown: “a strong shift on the Hill to limiting the de minimis exemption to stablecoins only.”
BPI has met with 19 congressional offices pushing for Bitcoin inclusion.
ON-CHAIN DATA
- Lightning Network monthly volume: $1.17 billion (Nov 2025)
- Monthly transactions: 5.22 million
- Context: Contradicts alleged claim “no one is using Bitcoin as money”
BTC Holds $70K; Fear & Greed at 18
Bitcoin traded at $70,042, down 0.44% in 24 hours.
The Fear & Greed Index sat at 18, deep in Extreme Fear, as realized losses hit post-FTX lows.
Crypto Fear & Greed Index. Source: Alternative.me
Spot ETFs posted $115 million in net inflows on March 11, led by IBIT.
What to Watch
Rep. Miller expects the PARITY Act to advance before August 2026.
Sen. Lummis’s competing bill would extend de minimis to Bitcoin at $300 per transaction.
The outcome determines whether everyday Bitcoin payments stay taxable or get stablecoin-level relief.
Coinbase donated roughly $69 million to Fairshake in the 2024 cycle.
That makes it one of crypto’s largest political spenders.
Disclaimer: This article is for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
