The US Congress is considering exempting stablecoin payments under $200 from taxes.

The U.S. House of Representatives is pushing for a $200 de minimis tax exemption threshold for each small stablecoin transaction, aiming to reduce the tax burden on everyday spending and increase regulatory clarity.

The new proposal comes as the US continues to XEM cryptocurrencies as Capital gains taxable assets, while the debate over stablecoin yields paid by crypto exchanges continues to face opposition from the banking sector.

The US House of Representatives proposes tax exemptions for stablecoin transactions of $200 or less.

The House bill aims to exempt stablecoin transactions of $200 or less from taxes, reducing tax friction when using stablecoins for payments and establishing a clear benchmark for small transactions.

In a recent proposal, MPs Max Miller (Ohio) and Steven Horsford (Nevada) suggested a tax exemption mechanism for stablecoins based on a "de minimis" threshold of $200 per transaction. This is part of a draft discussion on digital asset taxation.

"This provision is intended to establish a de minimis threshold of USD 200 per transaction, consistent with the foreign exchange transaction exception under Section 988."

In a statement , Congressman Miller described this as a bipartisan effort to increase consumer protection, clarify the rules of the game for innovators and investors, and strengthen compliance to create a level playing field.

“This bill will protect consumers in their everyday shopping, ensure clear rules for innovators and investors, and strengthen compliance so that everyone plays by the same set of rules.”

Senator Lummis's previous plan to exempt crypto from taxes was not passed.

A similar proposal was previously put forward with a $300 exemption threshold for small transactions and a tax deferral mechanism for Staking/mining rewards, but it did not make it to the final version because it did not meet the approval threshold and faced opposition regarding the risk of revenue loss.

In July 2025, Senator Cynthia Lummis proposed tax exemptions for small transactions, including those with a threshold of $300. She also supported tax deferrals for Staking rewards and mining profits during the revision of President Donald Trump's Big Beautiful Bill.

To curb abuse, the proposed tax exemption included an annual cap of $5,000 for crypto gains. However, these provisions were omitted from the final version after failing to reach the necessary vote threshold. Some Democratic lawmakers objected, arguing that this could reduce government revenue.

The IRS currently still taxes cryptocurrencies as assets with Capital gains tax rates of 10%–37%.

Currently, the IRS treats cryptocurrencies as assets, meaning transactions can incur Capital gains tax rates of 10%–37%, while long-term investors are subject to a more favorable rate of 0%–20%.

This tax framework makes using stablecoins for small payments prone to "friction" because it requires tracking the Capital basis and profit/loss for each transaction. Proposed de minimis thresholds, such as $200, aim to ease the compliance burden for everyday spending needs while maintaining the overall tax structure on crypto as an asset.

At present, it remains unclear whether the new proposal will be included in the bill on the structure of the crypto market.

The debate over stablecoin yields from crypto exchanges continues unabated.

Stablecoin yields paid by exchanges like Gemini and Coinbase continue to face opposition from bank lobbyists who fear deposit outflows, while crypto companies argue that it is anti-competitive.

According to the banks' argument, stablecoins could attract Capital as users seek rewards of 3%–4%, instead of the Medium yield of less than 1% on bank checking accounts. This, they argue, could be detrimental to community banks.

Conversely, Gemini co-founder Tyler Winklevoss and other industry stakeholders counter the "overstepping" anti-competitive notion. Responding to a collective letter to Congress defending the GENIUS Act stablecoin bill, Winklevoss stated that the industry would not accept banks obstructing the process.

“We will not let them (the banks) do this. That is why we signed this letter along with more than 125 other companies to protect the GENIUS Act as it is written.”

Conclude

The US Congress is restarting efforts to exempt low-value stablecoin transactions from taxes, but the likelihood of this being included in final legislation remains uncertain. Meanwhile, the battle over stablecoin yields offered by cryptocurrency exchanges remains a hot topic between the cryptocurrency industry and the banking sector.

Frequently Asked Questions

What is the proposal to exempt $200 stablecoins from taxes in the US?

This proposal suggests creating a "de minimis" threshold for each stablecoin transaction worth $200 or less, aiming to exempt/reduce tax obligations arising from small transactions, similar to the exception for foreign currency transactions under Section 988.

Why have previous attempts to exempt or defer crypto taxes been unsuccessful?

Some earlier proposals failed to reach the voting threshold to be included in the final version of the bill, and also faced opposition due to concerns about reducing government revenue.

How is the IRS taxing cryptocurrency in the US?

The IRS considers cryptocurrencies to be assets, so transactions may be subject to Capital gains tax of 10%–37%. For long-term investors, the tax rate is usually more favorable, ranging from 0%–20%.

Why are banks opposed to stablecoin yields from crypto exchanges?

The banking sector is concerned that deposit Capital will shift to stablecoins to receive 3%–4% rewards, instead of the Medium yield of less than 1% on checking accounts, putting pressure on community banks.