Debate Over $300 Bitcoin Tax Exemption and Estimated Revenue Increase

In the United States, a proposal has emerged suggesting that allowing a $300 (approximately 410,000 KRW) tax exemption for small Bitcoin (BTC) transactions could actually increase tax revenue, reigniting the debate over the taxation of digital assets. The current U.S. tax law treats digital assets as property rather than currency, leading to complications in profit and loss calculations and reporting for even small transactions.

CryptoBriefing reported on the 4th, citing a Cornell University study, that a $300 exemption for small Bitcoin transactions could increase the U.S. Treasury's tax revenue by $860 million (approximately 1.167 trillion KRW). However, no publicly confirmed original Cornell paper or report has been verified, so this figure should be viewed as an estimate from the research reported by CryptoBriefing.

The only currently verifiable legislative proposal is the digital asset taxation bill from U.S. Senator Cynthia Lummis. In the bill released on July 3, 2025, Senator Lummis proposed a $300 exemption for digital asset transactions, along with an annual limit of $5,000 (approximately 6.79 million KRW) and rules for aggregating related transactions.

The Joint Committee on Taxation (JCT) estimated that this bill would yield a net tax revenue effect of about $600 million (approximately 814.2 billion KRW) during the 2025-2034 budget period. This is an official estimate based on the legislative proposal, but it has not been confirmed to be derived from the same model as the $860 million estimate reported by CryptoBriefing.

The small transaction exemption is a mechanism that alleviates the tax calculation or reporting burden for transactions below a certain amount. In the U.S., since digital assets are considered property, purchasing a cup of coffee with BTC may require comparing the acquisition cost with the value at the time of use to determine profit or loss.

The issue lies in the distinction between tax exemptions and reporting exceptions. The IRS maintained the reporting framework for digital asset brokers in the 2026 Form 1099-DA guidelines. However, it allowed for separate reporting exceptions for specific digital asset payment revenues involving payment processors below $600 (approximately 81,000 KRW) and qualified stablecoin revenues below $10,000 (approximately 1.357 million KRW).

This standard is not a general tax exemption for Bitcoin. It is closer to guidelines on what transactions brokers must report and is distinct from how taxpayers calculate their transaction profits and losses.

The House Ways and Means Committee also addressed the reform of digital asset taxation, but its direction differs from the Senate proposal. On June 9, 2026, the committee unveiled a package of bills that included network fees, U.S. dollar-pegged stablecoins, mining and staking, charitable deductions, self-reporting programs, and tax avoidance prevention rules.

The House package emphasized alleviating reporting burdens and revising existing tax laws rather than a specific $300 exemption for Bitcoin. According to Bloomberg, the latest parity bill prepared by House tax committee members did not include new exemptions for most small cryptocurrency transactions and instead called for Treasury research and temporary guidelines within 180 days.

The policy debate touches on whether Bitcoin should be viewed as a means of payment or as an investment asset. Supporters of the small transaction exemption argue that lowering tax costs for everyday payments would make actual usage feasible.

The Bitcoin Policy Institute stated in a March 12, 2026 article that Congress is discussing small transaction exemptions that include Bitcoin, arguing that limiting exceptions to stablecoins leaves a burden on BTC users. This logic suggests that to broaden the use for payment purposes, distinctions between asset types should be minimized.

Cautionary perspectives prioritize tax neutrality. The Tax Foundation pointed out in a September 3, 2026 article that while a small transaction exemption for digital assets could reduce administrative burdens, providing preferential taxation for specific assets could raise equity issues with other investment assets.

Stakeholders are also divided. Individual users and payment service providers may expect a reduction in the calculation burden for small transactions, but tax authorities must also consider issues of transaction fragmentation and tax equity between assets.

For domestic investors, this discussion holds significance not just in terms of price outlook but also in terms of changes to the taxation infrastructure. Like the U.K.'s tightening of cryptocurrency tax pressures, major countries have been moving towards incorporating digital asset transactions into formal tax systems.

The crux of this discussion is not the price of BTC but rather where digital assets will be positioned under U.S. tax law. The $860 million estimate reflects the effects of expanded economic activity, while the JCT's approximately $600 million is an official estimate based on the legislative proposal.

As of September 5, 2026, Korean time, the final legislative passage of the $300 tax exemption for Bitcoin has not been confirmed. The Senate proposal focuses on easing personal small transactions, while the House discussions emphasize reducing reporting burdens and maintaining tax neutrality.