How Fiscal Policy on Government Bonds and Taxation Hinders Bitcoin Adoption

Taxing each small Bitcoin transaction presents a much more significant barrier than technological scaling limitations, according to industry experts. The current fiscal policy, including the treatment of government bonds in calculations supporting stablecoins, creates structural obstacles for Bitcoin to become a viable payment method in everyday life.

Pierre Rochard, a board member of the Bitcoin treasury company Strive, highlighted that the absence of a de minimis tax exemption for microtransactions is the main obstacle to adoption. According to analyses from Cointelegraph, every Bitcoin transfer is subject to taxation, discouraging its use as a current exchange instrument and limiting its potential to become a circulating currency in daily transactions.

De Minimis Tax Exemptions: The Missing Piece of the Adoption Puzzle

Recently, the Bitcoin Policy Institute, a non-profit organization dedicated to advocacy in the field, pointed out the lack of exemptions for minor Bitcoin transactions. These would allow microtransactions to avoid administrative and tax processes that make them impractical for the average user. Without such protective mechanisms, an annual tax cap alone is not enough to encourage real use as a means of payment.

Government-Backed Stablecoins: A Different and Criticized Approach

U.S. legislators have considered restricting de minimis exemptions for dollar-backed stablecoins, which are fully supported by fiat cash deposits or short-term government bonds. This proposal differentiates the tax treatment between Bitcoin and stablecoins, creating a de facto inequality in the tax system. The Bitcoin community has sharply criticized this differentiation, arguing that it arbitrarily limits Bitcoin’s potential as a medium of exchange and favors traditional financial instruments.

Legislative Proposals and Industry Resistance

Wyoming Senator Cynthia Lummis, a well-known supporter of the crypto industry, presented a legislative proposal in July 2025 advocating for a de minimis tax exemption for digital assets valued at $300 or less. The bill also proposed an annual cap of $5,000 for cumulative exemptions and included special protections for cryptocurrencies used for charitable purposes. Additionally, it suggested delaying the reporting obligation for staking or mining income until the assets are sold, a measure that significantly simplifies compliance for users.

Industry Leaders’ Positions

Prominent figures in the crypto space have publicly expressed support for these initiatives. Jack Dorsey, founder of the payment platform Square, emphasized the urgent need for Bitcoin to evolve into “everyday money” as quickly as possible. Dorsey believes that the current fiscal policy is the main blocking factor, not the technology itself.

However, critics point out the complexities of these proposals. Marty Bent, a Bitcoin advocate and co-founder of the media outlet Truth for the Commoner, described the restrictions on government-backed stablecoins as “contradictory to market logic.” According to Bent, the arbitrary differentiation between Bitcoin and other digital assets undermines the goals of fiscal modernization.

Conclusions: Toward a Coherent Fiscal Policy

The ongoing debate highlights the complexities involved in integrating cryptocurrencies into daily financial systems. The current fiscal policy, with unfair restrictions on Bitcoin and differentiated support for stablecoins via government bonds, creates an inhospitable environment for innovation. The need for a coherent and fair fiscal policy becomes increasingly urgent as the crypto industry is called upon to adapt to existing regulatory frameworks.