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WASHINGTON, D.C. - It has been confirmed by the White House that President Donald Trump and his team are in favor of considering a “de minimis” tax exemption for low-value Bitcoin and other cryptocurrency transactions. This could be seen as a breakthrough for American crypto users at large.
As per
high-ranking government officers, the initiative is expected to see exempting
small capital crypto payments like those made for daily purchases or through
microtransactions from being subjected to capital gains taxes, thus making it
easier for people to use digital assets in their everyday economic activities.
The suggestion is meant to facilitate wider usage of cryptocurrencies in
consumer payments while avoiding imposition of cumbersome tax reporting
obligations on the users.
“The
administration thinks that there should be innovation with financial freedom,”
said a White House representative. “Through considering some exemptions on
minor digital currency transactions, we promote the use of these assets in a
responsible manner, keep up with taxes but also ensure fairness.”
What the
De Minimis Exemption Means for Crypto Users
At
present, every cryptocurrency transaction attracts taxation under the IRS
regardless of its size. Therefore, even buying a cup of coffee using Bitcoin
would lead to a capital gains calculation if at all the value of the crypto has
changed since purchasing it.
By
introducing a de minimis exemption, compliance costs would be reduced for
low-value transactions hence making it simple for Americans to spend crypto
like cash.
Policy
experts say the exemption could apply to transactions under $200 to $600,
similar to previous bipartisan proposals introduced in Congress under the
Virtual Currency Tax Fairness Act. Such a move would reduce friction in crypto
payments, benefiting both consumers and merchants while encouraging more
legitimate on-chain economic activity.
Industry
Reaction and Market Impact
The
announcement drew immediate praise from the digital asset community. Crypto
industry leaders and advocates called the proposal a “common-sense reform” that
aligns U. S. tax policy with emerging financial technologies.
“This
could be a game changer,” said one blockchain policy analyst. “If small crypto
payments are tax-free, it could unleash innovation in digital commerce and
accelerate Bitcoin’s role as a medium of exchange, not just a store of value.”
The market
reacted positively to the news, with Bitcoin (BTC) climbing above $48,000, and
several crypto payment platforms reporting a surge in activity.
A
Strategic Shift in U. S. Crypto Policy
Trump’s
support for a de minimis exemption marks a significant evolution in his
administration’s approach to digital assets. While earlier policies emphasized
regulation and oversight, the current strategy appears focused on integration,
innovation, and tax modernization.