Coinbase CPO Denies Bitcoin Tax Block, Dorsey Asks Armstrong

The Bitcoin de minimis tax exemption fight turned personal on March 11 when Coinbase Chief Policy Officer Faryar Shirzad fired back at allegations the exchange is quietly working to kill Bitcoin's shot at becoming everyday money. His denial landed on X — but the man whose name actually matters, CEO Brian Armstrong, stayed silent. And that silence is the real story.

What Did Coinbase's CPO Actually Say?

Shirzad's response was blunt. Replying to Bitcoin podcaster Marty Bent, he wrote: 'This is a total lie @MartyBent. We have never and will never lobby against Bitcoin. Ever.' Strong words. But Bent's original claim was specific — that Coinbase told lawmakers the exemption is unnecessary because 'No one is using bitcoin as money. A de-minimis exemption for bitcoin is a hand out that will be DOA.' Bent also alleged the company is pushing for stablecoins-only treatment, which would benefit Coinbase's USDC business far more than any Bitcoin payment rail.

Block's Jack Dorsey didn't let it slide. He tagged Brian Armstrong directly: 'hope this is true for de minimis as well. @brian_armstrong?' Armstrong didn't respond publicly. A CPO denial is not a CEO confirmation — and the distinction matters enormously when the company's stablecoin interests run directly counter to Bitcoin's tax treatment.

This is a total lie @MartyBent. We have never and will never lobby against Bitcoin. Ever.

What Is the Bitcoin De Minimis Tax Exemption?

Under current U.S. law, Bitcoin is property — meaning every single spend, even buying a coffee, creates a taxable event requiring cost-basis tracking and IRS paperwork. The Bitcoin de minimis tax exemption backed by Sen. Cynthia Lummis (R-WY) would change that, setting a $300-per-transaction threshold and $5,000 annual cap, putting casual Bitcoin payments on similar footing to minor foreign-currency exchanges.

Bitcoin Policy Institute Managing Director Conner Brown confirmed the political winds are shifting the wrong direction. 'I can confirm that over the past three months there's been a strong shift on the Hill to limiting the de minimis exemption to stablecoins only,' he said. 'BPI continues to meet with lawmakers to explain what a strategic blunder this would be for the U.S.' If stablecoins get the carve-out while Bitcoin gets nothing, that's not a compromise. That's a defeat.

Does the Data Back Block's Case?

Block launched the Bitcoin is Everyday Money campaign in November 2025, rolling out Lightning Network tools letting Square merchants accept Bitcoin with zero fees through 2027. The company's Bitcoin product lead Miles Suter framed it starkly: 'If Bitcoin just becomes digital gold, we failed the mission. Bitcoin payments validate Bitcoin. They make it real. Bitcoin is money.'

The Lightning Network data published by River Financial blows a hole in the 'nobody uses Bitcoin as money' narrative. In November 2025 the network processed $1.17 billion in monthly volume across 5.22 million transactions, covering more than 50% of network capacity. Average transaction size climbed to $223. Block's own Lightning node generated a 9.7% yield routing real payments, while Cash App handled one in four outbound Lightning transactions after 7x usage growth.

If Bitcoin just becomes digital gold, we failed the mission. Bitcoin payments validate Bitcoin. They make it real. Bitcoin is money.

Why Armstrong's Silence Says More Than Shirzad's Denial

Coinbase co-created USDC. A stablecoins-only de minimis exemption is structurally good for Coinbase's business and structurally bad for Bitcoin adoption. Shirzad denied lobbying 'against Bitcoin' — but that's a different claim than denying opposition to this specific exemption. Those two things can coexist. The fact that Brian Armstrong has not personally clarified Coinbase's position on the Lummis bill, even after Dorsey called him out publicly on March 11, is telling.