Coinbase executives, together with CEO Brian Armstrong and Chief Coverage Officer Faryar Shirzad, have strongly pushed again in opposition to latest allegations claiming the crypto alternate is actively lobbying in opposition to an important tax exemption for Bitcoin with a purpose to enhance its personal stablecoin revenues.
The controversy erupted on X (previously Twitter) on Wednesday, with high-profile business of the likes of billionaire Jack Dorsey becoming a member of the fray.
Some Bitcoin supporters have alleged that Coinbase has been quietly telling Washington lawmakers {that a} de minimis tax exemption for Bitcoin is pointless and can be “DOA” (useless on arrival) as a result of “nobody is utilizing Bitcoin as cash.”
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A de minimis tax exemption is extensively thought of the holy grail for Bitcoin adoption as a medium of alternate.
If handed, it will remove capital positive aspects taxes and IRS reporting necessities on on a regular basis cryptocurrency transactions. Shopping for espresso, as an illustration, would not be a taxable occasion.
Nevertheless, some to some allegations, somewhat than supporting this aid for Bitcoin, Coinbase is pushing for the exemption to completely apply to regulated, dollar-pegged stablecoins like USDC.
The USDC money cow
Coinbase has a large monetary incentive to advertise USDC over Bitcoin for funds, which is why the accusations shortly gained traction.
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The crypto behemoth generated an estimated $1.35 billion in stablecoin income in 2025, which marks a 48% year-over-year improve.
This income comes virtually solely from curiosity earned on U.S. Treasuries held within the USDC reserve pool.
Following the passage of the landmark GENIUS Act in July 2025, some analysts projected that Coinbase’s stablecoin income might surge as much as 7x if USDC adoption expands into mainstream funds.
Each shopper who makes use of USDC for a transaction as an alternative of Bitcoin leaves extra fiat {dollars} sitting in Coinbase’s reserve pool. This makes it attainable for the alternate large to generate risk-free yield.
The pushback
Coinbase management instantly went on the defensive, shutting down the rumors.
CEO Brian Armstrong known as the claims “misinformation.”
“Undecided the place you are getting this misinformation (maybe you may share?) however it’s completely false. I’ve spent a bunch of time lobbying for Bitcoin’s de minimis tax exemption, and can proceed doing so. It is clearly the suitable factor,” he mentioned.
Chief Coverage Officer Faryar Shirzad has additionally acknowledged that the accusations are a “complete lie.”
Dorsey joins the fray
Dorsey, a staunch Bitcoin maximalist whose firm closely depends on Bitcoin’s success as a cost community, additionally instantly pressed the Coinbase CEO, asking: “Hope that is true for de minimis as properly. @brian_armstrong?”
Armstrong shortly confirmed that the corporate was not lobbying in opposition to the exemption.