Key Highlights
- Senator from Wyoming, Cynthia Lummis, has responded to Jack Dorsey’s tweet on the “de minimis” exemption
- In a post, Jack Dorsey demanded a de minimis tax exemption for everyday bitcoin transactions
- Jack Dorsey’s FinTech company, Block, introduced a new product called Square Bitcoin to accept Bitcoin payments
In the latest post shared on X (formerly Twitter), U.S. Senator from Wyoming, Senator Cynthia Lummis, responded to Jack Dorsey’s support for a Bitcoin tax exemption.
If only we had a ₿ill for that…
Oh, wait.⬇️ https://t.co/xENadEbrlJ pic.twitter.com/WCWr2MS0hh
— Senator Cynthia Lummis (@SenLummis) October 9, 2025
Earlier, Jack Dorsey shared a tweet, saying that “We need a de minimis tax exemption for everyday bitcoin transactions.” This tweet comes after his FinTech company, Block, introduced a new product called Square Bitcoin.
Square Bitcoin is a digital wallet and point-of-sale (POS) system that allows store owners to accept Bitcoin payments using the Square machines they already have.
It uses the Lightning Network to execute transactions faster with low cost. To help businesses start, there will be no processing fees until 2027. After that, the fee will be just 1%.
Also, stores can choose to keep their earnings in Bitcoin or have it automatically converted into regular fiat currency, which greatly reduces their costs compared to accepting credit cards.
In response to Jack Dorsey’s Tweet, Senator Cynthia writes, “Working on it. If this is of interest to you, please tell your Senators/House member!”
What is Senator Cynthia Lummis’s de minimis Rule for Bitcoin Transactions?
U.S. Senator Cynthia Lummis introduced comprehensive digital asset tax legislation to make reform in the U.S. tax code for cryptocurrency holders.
The bill, widely popular as the “Lummis Crypto Tax Bill,” is to make taxes easier for people who use crypto. The main purpose of this bill is to address major problems present in the current tax reporting system. This includes difficult paperwork for small purchases, being taxed twice on activities like mining, and unfair rules compared to traditional investments.
By making these processes simpler, the bill is expected to attract new innovations. According to some experts, these changes could also boost government revenue by $600 million over the next 10 years.
The main part of this bill is a “de minimis” rule. This is a Latin phrase that means “the law does not concern itself with trifles,” or very small matters.
This rule means that if you have a gain or a loss from selling or exchanging a digital asset that is under $300 in a single transaction, you will not be liable to pay any capital gains taxes on it without IRS reporting. This is similar to exemptions that exist for small foreign currency or stock trades.
To prevent people from misusing this rule, there is a yearly limit of $5,000 for these exempted transactions. This ensures the rule helps regular people for small purchases while still being responsible with government money. Senator Lummis said this part of the bill is very important for embracing the U.S. digital economy and not burdening users.
Senator Lummis Fights Back Against Unfair Taxation Model for Crypto Innovations
As of now, the U.S. Internal Revenue Service (IRS) treats cryptocurrencies as property. This means the cryptocurrency sector complies with a complex framework that applies capital gains and income tax rules to various crypto activities.
Earlier, Senator Lummis also wrote a letter to Treasury Secretary Scott Bessent, where she raised questions on the current tax laws for crypto. According to her, this taxation is punishing U.S.-based crypto innovations.
She said, “Our edge in digital finance is at risk if U.S. companies are taxed more than foreign competitors. @berniemoreno & I urged the @USTreasury to lift an unintended tax burden on U.S. digital asset companies. To lead the world in digital assets, we need a level playing field.”
However, some critics have raised concerns about this bill. They warn that the de minimis exemption, while helpful, still mandates full transaction tracking with zero time saved for users. This could enable abuse via the $5,000 annual cap, eroding revenue despite the $600 million projection.
