Tax reform of $5000: Can Bitcoin become a means of everyday payment?

Overcoming obstacles to the widespread adoption of Bitcoin as a payment tool is not limited by technological scaling constraints but is hindered by archaic tax regulations. According to Pierre Roshard from Bitcoin treasury Strive, the tax policy requiring the taxation of every microtransaction is the main obstacle to turning BTC into everyday money. The issue is further complicated by the absence of a minimum tax exemption for small transactions.

The core issue: why taxes freeze the development of payments

The Bitcoin Policy Institute at the end of 2025 highlighted a critical loophole in tax legislation — the lack of exemptions for small transactions. Under the current system, every coffee purchase with Bitcoin becomes a taxable event requiring documentation and reporting. Such regulatory burdens effectively stifle the organic development of a BTC-based payment infrastructure.

Meanwhile, American lawmakers are discussing restrictions on tax advantages for dollar-pegged stablecoins backed by fiat reserves and government securities. This proposal has faced criticism from the crypto community, which sees it as an attempt to stifle alternative payment systems.

Lummis Bill: a path to de minimis benefits

Amid growing dissatisfaction in mid-2025, Wyoming Senator Cynthia Lummis, a recognized supporter of the crypto industry, introduced a comprehensive bill. Its central provision offers de minimis tax benefits for digital assets with amounts not exceeding $300 per transaction. But the key innovation is the establishment of an annual exemption limit of $5,000. This threshold becomes a crucial compromise between the need to stimulate microtransactions and the interests of tax authorities.

The legislative proposal also includes additional support measures: tax benefits for charitable donations in digital assets and deferral of income tax on staking and mining until the sale of assets. The set of measures aims to create a more attractive tax environment for the cryptocurrency economy.

Divided opinions: who supports and who opposes

Notable figures in the crypto space are divided in their assessments of the proposals. Jack Dorsey, founder of the payment company Square, publicly supported the idea of tax benefits for small Bitcoin transactions, emphasizing the urgency of turning BTC into “everyday money.” His position reflects the industry’s desire for practical integration of cryptocurrencies into mass adoption.

Opposing this view, Marty Bent, a Bitcoin advocate and co-founder of the media platform Truth for the Commoner, called the proposal for stablecoin tax advantages “absurd.” In his opinion, discounts for centralized alternatives undermine the true revolutionary nature of decentralized currency.

Why $5,000 becomes a magic number

The annual limit of $5,000 set in the Lummis Bill reflects an attempt to balance promoting mass usage with maintaining tax revenues. Under this threshold, the average user can perform small microtransactions without excessive tax burdens, while large players remain under full tax control.

This boundary becomes a kind of demarcation line, separating “everyday use” from “financial operations.” Current debates show that integrating cryptocurrencies into financial systems requires not only technical innovations but also political maturity and regulators’ willingness to revisit outdated tax norms.