Coinbase executive urges U.S. lawmakers to ease taxes on small crypto payments

Lawrence Zlatkin told the House Ways and Means Committee that stablecoin payments should not face capital gains tax and that low-value Bitcoin and other crypto transactions need a de minimis exemption.

BTC

Summary

Coinbase vice president of tax Lawrence Zlatkin has urged U.S. lawmakers to reduce tax friction on everyday crypto spending by removing capital gains tax requirements on stablecoin payments and creating a de minimis exemption for small Bitcoin and other digital-asset transactions. In testimony before the House Ways and Means Committee, he said current rules make routine purchases impractical because even minor transactions can trigger taxable events and reporting burdens. He argued, “Americans should not need to hire an accountant just to buy a pair of jeans with BTC.”

Terms & Concepts
  • de minimis exemption: A small-value exemption that excludes low-value transactions from certain tax or reporting requirements.
  • capital gains tax: Tax owed on profit realized when an asset is sold or spent at a gain.
  • stablecoins: Crypto tokens designed to maintain a stable value, often by tracking the U.S. dollar.