White House Backs Trump's Push for "de minimis tax exemption" to Ease Everyday Crypto Use

During a press briefing on July 17, White House Press Secretary Karoline Leavitt reaffirmed the Trump administration’s commitment to supporting a "de minimis tax exemption" for cryptocurrency transactions. The proposed policy aims to make crypto payments more convenient and efficient by exempting small, everyday purchases, such as buying a cup of coffee, from tax reporting requirements.

This move reflects the administration’s broader efforts to eliminate barriers to mainstream crypto adoption and encourage the use of crypto in daily life.

Leavitt stated that the administration was definitely receptive to the idea, aiming to make crypto payments easier and more efficient for those who wished to use cryptocurrency for simple, everyday transactions. Leavitt added, “Of course, right now that cannot happen, but with the de minimis exemption, perhaps it could in the future, and we will continue to explore legislative solutions to accomplish that.”

Crypto Tax Relief Stalls in Congress, But White House Eyes Alternatives

Earlier in July, Senator Cynthia Lummis attempted to introduce a similar tax exemption in the “One Big Beautiful Bill Act,” a wide-ranging legislative package addressing tariffs, taxes, border security, social programs, and more. The proposed amendment would have exempted capital gains under $300 from tax reporting. However, the measure failed to secure enough votes to be included in the final version of the bill, according to The Block. Despite the legislative setback, the administration is reportedly exploring alternative pathways to implement the proposed crypto tax exemption.

Under current U.S. Internal Revenue Service (IRS) rules, cryptocurrency is treated as property. As a result, every transaction is considered a taxable event and must be reported, regardless of the amount. This regulatory framework has long been viewed as a barrier to the everyday use of digital assets.

By contrast, other countries have adopted more favorable approaches. In Germany, private crypto sale profits of up to €1,000 per year are tax-exempt. The United Arab Emirates (UAE) is also widely regarded as a crypto haven. With no personal income tax, individual gains from trading, investing, or mining cryptocurrencies are generally not taxed. Similarly, El Salvador, where Bitcoin was declared legal tender in 2021, exempts both residents and foreigners from capital gains taxes on Bitcoin transactions.