The US Congress is currently analyzing the application of the small exemption principle to Bitcoin (BTC) and cryptocurrencies. The measure aims to modify the tax system, which today requires reporting even the most trivial purchases, such as coffee.
In the legislative field, the concept refers to a level of financial activity that is so small that the costs of state supervision exceed the actual collection benefits.
Internal Revenue Service (IRS) Bitcoin is currently classified as an “asset”. Its value constantly fluctuates against the dollar, so every time it is used to make a payment, it is technically a sale of the asset. If the value of the digital currency increases from the time of purchase, the user generates a taxable capital gain.
The proposed “minimum” exemption, currently under analysis, would establish a limit of $300 per transaction, below which these changes would not be required to be calculated or reported. The aim is for retail transactions to operate with the same agility as foreign currencies, which already have reduced taxes when covering personal expenses.
This discussion became relevant in March of this year due to a confluence of three factors. The first is system saturation. This is due to the new format (el1099-DA) coming into force. Intermediaries must report on user interactions in bulk. But without a minimum standard, both the IRS and taxpayers would face overreporting for transactions worth just a few dollars.
The second factor is the progress of numbers, which refers to a proposal by Sen. Cynthia Lummis, who acknowledged on March 4, 2026, that “the number being analyzed is about $300,” the lawmaker told CNBC.
Additionally, there is a third element: the dilemma of inclusion. This is due to disagreements over whether the “minimis” benefit should be limited to only stablecoins or actually include Bitcoin.
Dilemma: Is Bitcoin exempt or just stablecoins?
The Bitcoin Policy Institute argues that excluding the mainnet would limit innovation, but there are also bipartisan proposals such as Miller and Horsford to set a $200 threshold for regulated stablecoin operations.
For the general public, this measure Eliminates the tedious task of tracking the original value of each fraction of a Bitcoin Used at time of purchase. Eliminating this accounting calculation for each payment eliminates one of the main barriers currently preventing cryptocurrencies from being used as easily as cash.
However, the proposal faces intense scrutiny from various quarters, who warn of potential risks of tax avoidance if the threshold is set too high. However, the Joint Committee on Taxation notes that administrative simplification could offset minor losses in collections.
Therefore, while Congress is deliberating, the “fine details” of the tax law are Still the main obstacle to daily use of Bitcoin and US virtual currency.
The situation is similar in Latin America, but with different legal nuances. In most countries in the region, using Bitcoin for small purchases creates similar administrative frictions. This means that it is considered an asset or “intangible good” rather than a currency, so each transaction requires users to calculate the difference in price between when the asset is purchased and when it is used in commerce.
In countries such as Mexico and Colombia, the lack of a minimum standard means that payments for even minimum services should technically be recorded as a taxable disposition of property.
Only in exceptional cases, such as in El Salvador, where assets were initially considered legal tender, are these obstacles completely removed from the tax code to facilitate the daily circulation of assets, CriptoNoticias reports.
(Tag translation) Bitcoin (BTC)
