Bitcoin’s push to be treated as money is being undercut by its own industry lobby.
On TFTC, David Zell detailed how cryptocurrency lobbyists, backed by firms like Coinbase, Ripple, and A16Z, successfully reshuffled the legislative agenda. Senator Cynthia Lummis had outlined four key digital asset priorities, starting with a strategic Bitcoin reserve and tax reform for small transactions. The lobby reportedly asked to tackle them in reverse order.
That reversal means regulatory frameworks for token trading and stablecoins now take precedence over the de minimis tax exemption, which would treat Bitcoin like currency for everyday purchases. Zell argued that while crypto executives publicly support the tax change, they spend little actual political capital on it. The incentive is clear: market structure rules directly benefit crypto trading businesses, while removing transaction taxes primarily serves Bitcoin’s use as money.
The disconnect became public last year when Coinbase declined to sign an industry letter supporting the tax exemption. The resulting pressure has since forced a tactical shift, with Coinbase now committing to a joint roundtable on the issue.
For Bitcoiners, the episode is a lesson in vigilance. Influence within the broader digital asset industry cannot be assumed; it must be actively defended.
David Zell, TFTC:
- The crypto lobby basically came back and said, we think these are all wonderful priorities.
- We'd like them in reverse order, please.
