Pooja Rajkumari Thu, November 20, 2025 at 3:12 AM GMT+8 3 min read In this article: - BTC-USD -7.01% XYZ -0.08%
Under current U.S. tax rules, every Bitcoin transaction, even buying a cup of coffee, constitutes a taxable event if it involves any gain.
Crypto advocacy groups have long argued that eliminating tax reporting for small transactions, typically under $50 or $200 depending on the proposal, would significantly lower barriers for consumers.
Twitter (now X) co-founder Jack Dorsey has consistently maintained that Bitcoin functions not only as a store of value but also as a practical payment method.
On Oct. 8, his company Block Inc. expanded that vision by rolling out new Square merchant tools that let small businesses accept Bitcoin payments without incurring fees through 2026.
A crypto de minimis exemption would change by allowing small transactions to be ignored for tax purposes, similar to how foreign currency is treated. For example, if the threshold were set at $50 or $200, any crypto payment below that amount would not require reporting, and no capital gains tax would apply.
Coffee for crypto
A month later, Block Inc. (NYSE: XYZ), the payments company founded by Dorsey, has launched a Washington, DC–wide outreach campaign aimed at rallying public support for a de minimis tax exemption on everyday Bitcoin (BTC) payments.
The campaign centers around a three-day “Capital Gains Coffee Truck” activation, running across multiple locations throughout the United States capital.
The truck will operate on Nov. 18 from 11:00 am to 3:00 pm at 16th & K St. NW, on Nov. 19 from 7:00 am to 3:00 pm at 109 C St. SE, and on Nov. 20 from 7:00 am to 3:00 pm at 17th & G St. NW.
According to Block, visitors can enjoy complimentary treats while learning how outdated tax rules create friction for small-value Bitcoin transactions.
In parallel, Block is hosting a series of Compass Coffee takeovers across the city, with pop-ups scheduled for Nov. 18 at 1201 Half St. SE, Nov. 19 at 1703 H St. NW, and Nov. 20 at 82 I St. SE.
Compass Coffee said it would be demonstrating Bitcoin payments at three cafés throughout the week in collaboration with the Cash App and Block. They noted that visitors could receive $5 in free BTC through Cash App and use it toward their next cup of coffee.
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De-minimis tax for crypto transactions
Block’s initiative comes at a time when bipartisan momentum for updating crypto tax rules is building in the United States Congress, where lawmakers have debated multiple versions of a de minimis exemption across several legislative cycles.
繼續閱讀State-level tax burdens vary widely. California, New York, and Hawaii impose some of the heaviest crypto-related tax liabilities in the country, with combined rates surpassing 10% for top earners. In contrast, Florida, Texas, Wyoming, Nevada, and South Dakota have no state income tax at all.
Related: Crypto bill has potential to shake up $2.6 trillion industry
Washington State is an outlier. Although it does not levy an income tax, it enforces a 7% excise tax on long-term capital gains above $250,000, and that includes cryptocurrency.
On Oct. 9, Dorsey wrote on X that “we need a de minimis tax exemption for everyday Bitcoin transactions.”
Such an exemption would eliminate tax reporting requirements for small purchases — like groceries, rideshares, or meals, removing a key friction point that currently discourages using Bitcoin for routine payments.
Related: Bitcoin Basics: 'How You Use Crypto Is How You're Taxed'
This story was originally reported by TheStreet on Nov 19, 2025, where it first appeared in the Policy section. Add TheStreet as a Preferred Source by clicking here.
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