Bitcoin policy debate heats up after lobbying claims against Coinbase

headline. Bitcoin policy debate heats up after lobbying claims against Coinbase,

published at 2.58 pm, March 12, 2026. Coinbase has denied lobbying against a

de minimis tax exemption for Bitcoin, BTC, despite a vehement claim by podcaster and 1031

managing partner Marty Bent that it has. Bent reported on March 11 that the exchange was

quietly telling lawmakers that a de minimis tax exemption for BTC payments was unnecessary.

According to Bent and his multiple Capitol Hill sources, Coinbase lobbyists allegedly told

legislators, no one is using BTC as money and that such a tax change would be dead on arrival.

He also claimed that the company only wanted the exemption to apply to specifically regulated

dollar-pegged tokens like the Coinbase supported USDC. Coinbase chief policy officer,

far-yard Sheerzad, denied the allegation flatly. This is a total lie, Marty Bent. We have never

and will never lobby against Bitcoin, ever. Kara Calvert, Coinbase's VP of US policy,

called the claim categorically false. She said Coinbase has advocated for a de minimis

exemption covering all digital assets, including BTC since 2017. Coinbase chief legal officer Paul

Greewall also called the allegation a lie while Nick Carter dismissed Bent's allegation out of hand.

Jack Dorsey, quote, tweeted Sheerzad's claim that Coinbase had never and will never lobby against

Bitcoin and asked for a confirmation from Coinbase's CEO, Brian Armstrong. Hope this is true for

de minimis as well at Brian underscore Armstrong? Armstrong confirmed. Disagreeing Connor Brown,

head of strategy at the Bitcoin policy institute, partially reiterated Bent's concern.

Without naming Coinbase directly, I can confirm that over the past three months, there's been a

strong shift on the hill to limiting the de minimis exemption to stable coins only. Brown wrote,

Pierre Rochard also thinks Coinbase isn't telling the whole truth. Bitcoin should be tax exempt.

It's really sad to see Brian Armstrong lobbying against that, he wrote. Even when Greewall called

him out for defamation, Rochard stuck to his story. Wait until you see the bill. Read more.

Crypto leaked by South Korean tax officials stolen a second time. A wrinkle in Coinbase's tax denial.

Coinbase has certainly been clear that its stance is that it's never advocated against a

Bitcoin de minimis tax exemption. However, Coinbase's stablecoin business and a confusing post

by Calvert slightly complicates its denial. Recall that Coinbase earned $1.3 billion in stablecoin

revenue in 2025, mostly from interest on the U.S. Treasury's backing USDC. A de minimis exemption

covering BTC only would allow people spend one non-USDC digital asset tax-free for everyday

purchases, thereby making BTC a somewhat direct competitor to USDC. Nonetheless, Coinbase's Calvert says

that Coinbase has been advocating for a crypto-wide all asset exemption for years.

She also claimed that stablecoins don't realize gains or losses because they are stable,

which is certainly not always true, but is her bizarre claim nonetheless.

If stablecoins were indeed stable and guaranteed to hold their $1 peg,

ignoring the fact that USDC has traded in the $0.80 many times, it would be absurd for Coinbase

to advocate for a stablecoin only tax exemption for USDC stablecoins, which, in Calvert's view,

don't realize gains or losses anyway. In truth, USDC has traded in a wide range from at least

87 cents to $1.09 on Kraken, including hundreds of millions of dollars in settled transactions

below 98 cents. Even lower and higher USDC prices have settled on other trading venues.

Coinbase wants to win on Capitol Hill. Ben's original post accuses one of the world's largest

and longest-running BTC exchanges of trying to nuke any hopes for a BTC-minimous tax exemption.

He described citing three unnamed sources, Coinbase pushing for an exemption on stablecoins only.

Even though Coinbase has clearly denied the allegation, the exemption under discussion backed

by Senators Cynthia Lumis would set a $300 tax threshold per transaction with a $5,000 annual cap.

It would thereby eliminate Capitol gains taxes on small crypto payments.

Whether the exemption will ever be enacted into IRS code and to which digital assets it would ever

apply is the active subject of Capitol Hill debate. Under current law, the IRS treats all digital

assets as property, so every sale, including the de facto sale of crypto while purchasing a good

or service, triggers a tax reporting obligation. Read more. Coinbase boasts lobbying efforts

with massive political donations. Coinbase contributed roughly $69 million to the Fair Shake

Super PAC during the 2024 cycle, more than any other donor. Another tracker shows Coinbase

political contributions exceeding $59 million. When Coinbase lobbies, Washington D.C. listens.

Got a tip? Send us an email securely via Proto's Leaks.