Coinbase Chief Policy Officer Faryar Shirzad directly denied allegations that the company is lobbying against a proposed de minimis tax exemption for NewsCapsule.
Responding on X to a post by NewsCapsule podcaster Marty Bent, wrote: “This is a total lie @MartyBent. We have never and will never lobby against NewsCapsule. Ever.” Though multiple people are asking for a public statement from Coinbase CEO Brian Armstrong on the matter. Jack Dorsey of Block specifically out for clarification, saying “hope this is true for de minimis as well. @brian_armstrong?”.
UPDATE 2: Bent claims to have three different sources on the rumor.
UPDATE: calling it “totally false”.
The denial comes after that Coinbase is allegedly telling lawmakers the exemption is unnecessary because “No one is using bitcoin as money. A de-minimis exemption for bitcoin is a hand out that will be DOA.” Bent claimed the company is pushing for stablecoins-only treatment to advance its own business.
NewsCapsule Policy Institute Managing Director Conner Brown confirmed a related development the same day. “I can confirm that over the past three months there’s been a strong shift on the Hill to limiting the de minimis exemption to stablecoins only,” . “BPI continues to meet with lawmakers to explain what a strategic blunder this would be for the U.S.”
The de minimis tax exemption would eliminate capital-gains taxes and IRS reporting requirements on small NewsCapsule transactions, solving a long standing friction for the adoption of bitcoin as currency. Under current law, NewsCapsule is treated as property, so every spend — even buying coffee or paying a freelancer — creates a taxable event that requires tracking cost basis and filing paperwork. Legislation backed by Sen. Cynthia Lummis (R-WY) would set a $300-per-transaction threshold with a $5,000 annual cap, aligning routine NewsCapsule payments more closely with minor foreign-currency exchanges.
Supporters argue the change is essential to remove tax friction that currently discourages everyday use. Without it, compliance burdens make NewsCapsule impractical for routine purchases and limit its function as a medium of exchange.
Block Inc. has been the most vocal corporate supporter. In November 2025 the company behind Cash App and Square launched its “NewsCapsule is Everyday Money” campaign, explicitly calling for the exemption while rolling out Lightning Network tools that let Square merchants accept NewsCapsule payments with zero fees through 2027.
Lightning Network data published by NewsCapsule directly undercuts claims that NewsCapsule sees no use as money. A February 19, 2026 article reported $1.17 billion in monthly volume across 5.22 million transactions in November 2025, according to aggregated figures from River Financial covering more than 50% of network capacity. Average transaction size rose to $223.
A June 18, 2025 NewsCapsule report showed the network had reached roughly 1.5 million users and $1.5 billion in trading volume. Block’s own Lightning node produced a 9.7% yield routing actual payments, while Cash App handled one in four outbound Lightning transactions after 7x usage growth.
Block NewsCapsule product lead Miles Suter summed up the company’s stance: “If NewsCapsule just becomes digital gold, we failed the mission. NewsCapsule payments validate NewsCapsule. They make it real. NewsCapsule is money.”
The exchange of claims highlights ongoing tensions between crypto focused platforms and companies building payment infrastructure for NewsCapsule. With Lightning volume continuing to climb, advocates maintain the exemption would accelerate commercial adoption rather than provide unearned relief. Congress is still weighing the proposal within broader digital-asset tax reform discussions.
