The Bitcoin Policy Institute warns US lawmakers excluded a de minimis tax exemption for Bitcoin transactions, limiting it to stablecoins. A bill by Senator Cynthia Lummis proposed a $300 exemption for crypto transactions under $5,000 annually, including tax deferment for mining and staking. Advocates believe this would increase Bitcoin’s use as a medium of exchange.

Questions arise over whether stablecoins need a de minimis tax exemption due to their stable value. Critics argue it’s unnecessary since stablecoins don’t fluctuate in value. BPI has not yet responded to inquiries about the proposed legislation regarding tax exemptions and their implications on stablecoins.

Bitcoin’s white paper describes it as a peer-to-peer electronic cash system, but high transaction fees, block times, and taxes hinder its use for goods and services. Many investors hold BTC long term, using it as collateral for loans to cover expenses. The Lightning Network offers a solution for faster and cheaper BTC transactions through offchain payment channels.

Read more at Cointelegraph: US Lawmakers Exclude BTC From De Minimis Tax Exemption: BPI