Proposal to ease the coin tax burden for block and small Bitcoin payment transactions

2026-01-13 09:07:57

Jack Dorsey’s payment company Block is pushing forward with new policy proposals to promote Bitcoin payments within the United States. In particular, they are advocating for the introduction of a tax exemption limit that excludes small Bitcoin transactions under $600 from taxation.

The Reality of Coin Tax Issues

Under current U.S. tax law, Bitcoin usage is classified as a capital asset sale, which requires all transactions to be reported for capital gains tax. Even small transactions for everyday consumption must go through complex tax reporting procedures. This significantly hampers users’ everyday use of Bitcoin.

Block’s Dual Strategy

Block is not just making policy suggestions but taking direct action. They have launched a new Bitcoin payment solution for merchants through the Square( platform, with the key feature of supporting Bitcoin payments without transaction fees.

The Direction of Practical Change

Block’s initiative that “Bitcoin is everyday currency” is building a concrete foundation beyond just a slogan. If the $600 tax exemption limit is actually implemented, it is expected to greatly reduce administrative burdens related to coin taxes. When combined with a fee-free payment system, the potential for Bitcoin as a real payment method will be further enhanced.

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