Coinbase is accused of lobbying legislation against a tax-free policy for small amounts of Bitcoin, arguing that it should only apply to stablecoins.

According to market sources, cryptocurrency exchange Coinbase is alleged to be lobbying US lawmakers behind the scenes to oppose a small-transaction tax exemption for Bitcoin, suggesting that the exemption be limited to stablecoins. Previously, Bitcoin policy advocate Marty Bent revealed on social media that Coinbase had told lawmakers that "nobody uses Bitcoin as currency" and that a small-transaction tax exemption for Bitcoin would be a "subsidy destined to fail." The crypto community considers this "very worrying" if true, aligning with concerns about recent crypto legislation (such as the GENIUS Act) where some policies are influenced by special interest groups and regulatory capture rather than genuinely promoting innovation. Policy discussions on Capitol Hill have shifted significantly in the past three months, with some proposals leaning towards providing small-transaction tax exemptions only for stablecoins, excluding Bitcoin. The Bitcoin Policy Institute, a Bitcoin advocacy group, stated that it is still in ongoing communication with lawmakers, arguing that limiting small-transaction tax exemptions to stablecoins would be a strategic mistake in US policy. The institute has long advocated for exempting small-transaction Bitcoin transactions from capital gains tax.