Report: The U.S. Could Increase 10-Year Revenue by Up to $2.58 Billion by Exempting Small Crypto Payments

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A new daily market report from the Cornell Brooks School Tech Policy Institute (BTPI) estimates that the U.S. could increase federal revenue over 10 years by up to $2.58 billion by exempting small crypto payments from capital gains tax. The analysis assumes 5.4 million users making Bitcoin or crypto payments under $300. Senator Lummis’ S. 2207 bill proposes a $5,000 annual exemption, while other proposals focus on stablecoins. Current tax rules discourage Bitcoin use for everyday payments, but relaxing them could drive greater adoption. Altcoins may also benefit from clearer regulatory frameworks.

Odaily Planet Daily report: According to a report by the Cornell Brooks School Tech Policy Institute (BTPI), if the U.S. implements a minimal exemption for Bitcoin and cryptocurrency payments under $300, federal net revenue is projected to increase by $859 million over 10 years, with a range of $172 million to $2.58 billion, assuming the number of digital asset payment users remains constant at 5.4 million.

Senator Cynthia Lummis’s S. 2207 bill proposes exempting capital gains taxes on related payments, with an annual capital gains exemption limit of $5,000. Other legislative initiatives seek to restrict this exemption to regulated stablecoins, and discussions are ongoing.

BTPI stated that current capital gains taxes and small transaction reporting requirements discourage the everyday use of Bitcoin for payments. Removing transaction-level tax and reporting burdens could increase Bitcoin payments and demand; under current adoption levels, the near-term impact on Bitcoin’s price and tax revenue may be limited, with long-term effects depending on factors such as payment volume. (Bitcoin.com News)

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