Bitcoin advocacy organization urges Congress to expand tax exemptions, BTC is expected to receive the same treatment as stablecoins

2026-01-14 06:01:16

Bitcoin Policy Research Institute and several other advocacy organizations recently jointly sent a letter to U.S. Congressional tax leaders, proposing to expand the transaction tax exemption scope from stablecoins to include Bitcoin and major network tokens. This suggestion marks a new step in the cryptocurrency industry’s efforts to secure more favorable tax policies and also reflects the industry’s call for unified regulatory standards.

Specific Content of the Exemption Standards

The proposed exemption plan includes three core elements:

Exemption Target	Specific Standard	Explanation
Stablecoins	Meets GENIUS standards	Treated as cash-like assets
Network Tokens	Market cap not less than $25 billion	Using market cap as a qualification criterion
Transaction Limit	$600 per transaction, $20,000 annually	To prevent abuse of exemptions

The core logic behind this standard design is: stablecoins, being pegged to the US dollar and relatively stable, can be treated as cash; major network tokens are screened through a market cap threshold to ensure only sufficiently mature and liquid tokens qualify for exemptions.

Why Now

BTC’s Market Position

According to the latest data, Bitcoin’s current market cap has reached $1.90 trillion, accounting for 58.56% of the entire cryptocurrency market. As the largest market cap crypto asset, BTC has long become an important asset class for institutional investors and mainstream finance. In this context, excluding BTC from the scope of tax exemptions seems unreasonable.

Practical Issues in Transaction Experience

The current tax framework imposes taxes on every small transaction, which presents operational problems. For example, with BTC priced at $94,990.31, if traders frequently make small transactions (such as dollar-cost averaging or hedging), each transaction incurs tax costs, significantly increasing trading expenses and administrative burdens.

Practical Significance of This Initiative

Industry Level

This is not only about securing favorable treatment for BTC but also about establishing a unified policy framework. Using market cap thresholds to determine eligibility effectively guides industry standardization—only projects that are sufficiently transparent and mature can receive policy support.

Potential Market Impact

If this initiative is ultimately adopted, it could:

Reduce trading costs for institutional investors and encourage more institutional participation
Increase trading activity among retail investors, especially in small transactions like dollar-cost averaging
Provide policy incentives for the market capitalization growth of other major network tokens (such as Ethereum)

Summary

This policy initiative reflects the current trend of the cryptocurrency industry moving from the fringe to the mainstream. BTC and major network tokens are no longer niche assets but are assets worthy of inclusion in mainstream financial frameworks. Although this is only an advocacy proposal rather than a confirmed policy, it marks another step forward in the industry’s pursuit of equal treatment. The next key step is to see how the U.S. Congress’s tax committee responds to this proposal.

BTC3,58%

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.