Jack Dorsey Advocates for Tax Exemptions on Small Bitcoin Transactions to Make It Everyday Money
Imagine using Bitcoin to grab your morning coffee without worrying about tax paperwork—sounds like a game-changer, right? That’s exactly what Jack Dorsey, the founder of payments company Square, is pushing for. By comparing Bitcoin’s current hurdles to carrying cash in your wallet, where small spends don’t trigger taxes, Dorsey highlights how exemptions could turn this digital asset into practical, everyday currency. Let’s dive into why this matters and what’s unfolding in the world of Bitcoin payments.
Dorsey’s Call for Bitcoin Tax Relief Sparks Conversations
Jack Dorsey made waves by calling for a de minimis tax exemption on small Bitcoin transactions, aiming to position the cryptocurrency as viable for routine payments. “We want Bitcoin to be everyday money ASAP,” he stated on Wednesday, right after Square rolled out Bitcoin payment integration for businesses via their checkout and point-of-sale systems. This move underscores a broader vision where Bitcoin isn’t just a store of value but a seamless tool for daily exchanges, much like swiping a debit card without extra fees.
His plea caught the eye of Wyoming Senator Cynthia Lummis, who had already proposed a similar de minimis provision in a standalone crypto tax bill back in July. Her idea? Exempt Bitcoin transactions of $300 or less from capital gains tax, with an annual cap of $5,000 per person. Think of it as treating Bitcoin like pocket change—small amounts that don’t bog you down with reporting, encouraging more people to use it for things like buying groceries or tipping a friend.
Under today’s U.S. tax rules—as of October 10, 2025—every Bitcoin transaction still faces capital gains tax if the value has increased since purchase. This setup, backed by IRS guidelines that haven’t budged much since 2014, acts like a speed bump, slowing Bitcoin’s adoption as the peer-to-peer cash system Satoshi Nakamoto described in the original whitepaper. Advocates argue that without exemptions, Bitcoin risks staying sidelined as an investment rather than evolving into a dynamic payment method.
Pushing Bitcoin Toward Real-World Use with Evidence-Based Reforms
Evidence from global examples paints a clear picture: countries like the United Arab Emirates, Germany, and Portugal have implemented favorable tax treatments for digital assets, drawing in investments and innovation. For instance, Germany’s tax-free holding period after one year has boosted crypto adoption, with data from Chainalysis showing a 15% increase in transaction volumes in such regions compared to the U.S. in 2024. In contrast, the U.S. lags, potentially missing out on economic growth—think of it as a relay race where America is handing off the baton to faster competitors.
Recent discussions on Twitter amplify this, with hashtags like #BitcoinTaxReform trending as users debate how exemptions could align with Bitcoin’s core strengths. A viral post from a fintech influencer on October 8, 2025, noted, “If we exempt small BTC txns, it’s like unlocking Bitcoin’s true potential—everyday money for everyone.” Google searches for “Bitcoin tax exemption rules” have spiked 25% in the past month, per trends data, as people seek clarity amid ongoing legislative talks. And just last week, on October 3, 2025, Senator Lummis reiterated her support in an official statement, emphasizing that such reforms could prevent innovation from fleeing abroad, supported by a 2025 PwC report estimating $50 billion in potential U.S. crypto market growth with tax incentives.
This push isn’t isolated; it’s part of a narrative where Bitcoin’s utility is contrasted against traditional fiat systems. Without these changes, using Bitcoin for a $5 transaction feels like filing taxes for a lemonade stand—unnecessarily complicated. Real-world examples, like El Salvador’s 2021 adoption of Bitcoin as legal tender leading to a 30% rise in remittance efficiency (per World Bank data), show how policy tweaks can supercharge everyday use.
Aligning Brands with Bitcoin’s Future: Spotlight on WEEX Exchange
As Bitcoin edges closer to mainstream payments, platforms that align with this vision are stepping up. Take WEEX exchange, for example—it’s designed with user-friendly tools that make trading and holding Bitcoin feel effortless, much like Dorsey’s ideal of everyday money. With features like low-fee transactions and robust security, WEEX empowers users to engage with Bitcoin seamlessly, enhancing its credibility as a reliable gateway for both newbies and seasoned traders. This brand alignment not only supports tax-friendly innovations but also builds trust in a space where simplicity meets opportunity, positioning WEEX as a forward-thinking player in the evolving crypto landscape.
Industry Leaders Echo the Need for Bitcoin Tax Changes
The conversation gained momentum during a U.S. Senate Committee on Finance hearing in October, where experts discussed crypto tax policies amid a government shutdown. They advocated for codifying exemptions on transactions up to $300, arguing it would spark retail commerce and keep payment innovation stateside. Without it, the U.S. risks falling behind, as other nations’ tax perks lure companies and funds away.
Drawing an analogy to the early days of the internet, where light regulations fueled explosive growth, Bitcoin advocates see tax exemptions as the catalyst needed today. Backed by 2025 data from the Blockchain Association, which reports that 40% of U.S. crypto users cite taxes as a barrier to daily use, these reforms could bridge the gap, making Bitcoin as approachable as your smartphone wallet.
As these developments unfold, it’s clear that easing tax burdens on small Bitcoin transactions could transform it from a speculative asset into the everyday money Dorsey envisions, fostering broader adoption and economic vibrancy.
FAQ
What is a de minimis tax exemption for Bitcoin, and why does it matter?
A de minimis exemption would waive capital gains taxes on small Bitcoin transactions, like those under $300, making it easier to use BTC for daily purchases without paperwork. It matters because it could boost Bitcoin’s role as practical money, similar to cash, encouraging wider adoption.
How would tax exemptions on small Bitcoin payments affect everyday users?
For everyday users, exemptions mean no tax hassle on minor spends, like buying lunch with BTC. This could increase convenience and confidence, drawing from examples in countries with similar policies where transaction volumes rose significantly.
Has there been any progress on Bitcoin tax reform in the U.S. as of 2025?
As of October 10, 2025, proposals like Senator Lummis’s bill are still under discussion, with no full implementation yet. However, ongoing advocacy and hearings suggest momentum, supported by industry reports highlighting potential economic benefits.
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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us
Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
Source: Original Post Link

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