Policies to Unlock Bitcoin as Everyday Money
When Satoshi Nakamoto released the bitcoin white paper in 2008, the idea was both radical and remarkably simple: “A Peer-to-Peer Electronic Cash System.” It wasn’t about speculation—it was about access. Bitcoin was designed to be open, fast, low-cost, and free from centralized control. It was, quite simply, about empowering people.
Bitcoin offers a unique architecture that could play a pivotal role in modernizing our financial infrastructure. Its decentralized nature offers a compelling model for resilience and innovation: no single point of failure, no necessary reliance on intermediaries, and no artificial barriers to entry. A network that doesn’t rely on trust is not just novel; it’s resilient by design, and creates space for permissionless innovation.
At Block, we’re building toward a world where bitcoin is everyday money—not just a store of value, but a practical tool for daily spending, buying, selling, and sending. We're committed to growing the bitcoin ecosystem, from bitcoin mining and self-custody tools, to the user-friendly applications that make bitcoin accessible for all people and small businesses. We believe bitcoin is the foundation for a more open, accessible, and equitable financial system, so we’re building tools that support the growth of the bitcoin ecosystem and lower the barrier to entry.
But to realize this vision, we need Congress to modernize the regulatory frameworks to support bitcoin as a truly functional and accessible form of everyday money. Clear, fit-for-purpose policy is essential to fostering innovation while maintaining appropriate safeguards. We believe there are three key steps Congress should take:
1. Establish Federal Licensing Clarity
Today, companies that make digital assets accessible to consumers must navigate fragmented and inconsistent federal and state laws. This complexity stifles innovation, raises barriers for market entry, and leaves consumers with limited access to modern financial tools. This lack of clarity for how companies should be licensed under existing regulatory frameworks has also resulted in an unclear registration process and federal agencies regulating through enforcement. A comprehensive federal market structure framework would clearly define which digital assets require regulation by the SEC vs. the CFTC, and under what conditions. Under the CLARITY Act for example, which was passed by the House of Representatives with strong bipartisan support, bitcoin would fit under the definition of a Digital Commodity and would be under the jurisdiction of the CFTC. Other ancillary activities - such as validating, mining, and developing software - would be explicitly excluded from the scope of the CFTC or SEC’s authority.
As policymakers consider how best to regulate digital assets, it's important to distinguish between digital assets broadly and the unique role of bitcoin. While digital assets encompass a variety of tokens and technologies, we believe bitcoin stands apart. Its fixed supply cap of 21 million coins ensures scarcity and predictability. Its decentralized, permissionless, and open-source blockchain architecture makes it one of the most transparent and democratically governed forms of money ever created. And its fungibility ensures that each unit is interchangeable and equal in value. These qualities make bitcoin uniquely positioned to function as a store of value, with the potential to operate as everyday money. For Congress to clearly define bitcoin as a Digital Commodity and regulate it as such would be an important and welcome advancement in modernizing financial regulation in the US.
We support these provisions being included in any market structure bill taken up by the Senate, and urge Congress to pass a unified federal licensing framework that would reduce legal uncertainty, eliminate regulation by enforcement, and enable responsible innovation while maintaining strong consumer protections.
2. Protect Core Bitcoin Infrastructure Providers
A fundamental provision we would like to see included in market structure legislation is the Blockchain Regulatory Certainty Act, which would codify a clear principle: regulatory obligations related to money transmission should apply only to those who have control over customer funds. Although FinCEN clarified this principle in 2019, statutory certainty is needed to protect participants that do not custody customer funds—like software developers, node operators, miners, and wallet providers—who support the network but don’t actually control funds. This legislation would ensure that essential, non-controlling infrastructure can continue to operate without being subject to regulatory frameworks designed for custodial intermediaries. This protection for non-controlling blockchain developers was included in the CLARITY Act that passed the House with broad bipartisan support.
3. Simplify Bitcoin Taxation for Everyday Transactions
As of today, bitcoin is subject to capital gains tax - meaning every time somebody uses it to purchase something like coffee or groceries, they incur an administrative hurdle that disincentivizes everyday use. A de minimis exemption for small-dollar bitcoin transactions would align its tax treatment with that of foreign currency, where small gains or losses are already exempt. This would modernize the tax code, reduce compliance burdens, lower transaction costs, promote innovation in payments, and enhance the utility of bitcoin - making it more practical for everyday use. As we prepare to launch bitcoin payments on Square later this year, this policy shift is essential to ensuring bitcoin can be more widely adopted as a medium of exchange.
It is encouraging to see Congress working towards adopting a de minimis tax exemption for digital assets. We applaud Congressional champions for continuing to support this important policy, and are supportive of this common sense measure being included in the next possible legislative package taken up for consideration by Congress.
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Bitcoin isn’t about theory — it’s about solving real problems. Its decentralized and borderless nature provides financial autonomy, making it viable as both a store of value and a medium of exchange. Whether it's sending value across borders, or seamlessly transacting with small businesses, bitcoin has the real-world potential of modernizing payments and addressing everyday financial needs. Congress has the opportunity to support practical innovation by updating laws that recognize bitcoin’s potential to be used as everyday money — empowering Americans to transact freely and affordably. It’s time for Congress to pass a comprehensive federal licensing framework and unlock a tax barrier for small-dollar bitcoin transactions to be a viable medium of exchange.
When Satoshi Nakamoto released the bitcoin white paper in 2008, the idea was both radical and remarkably simple: “A Peer-to-Peer Electronic Cash System.” It wasn’t about speculation—it was about access. Bitcoin was designed to be open, fast, low-cost, and free from centralized control. It was, quite simply, about empowering people.
Bitcoin offers a unique architecture that could play a pivotal role in modernizing our financial infrastructure. Its decentralized nature offers a compelling model for resilience and innovation: no single point of failure, no necessary reliance on intermediaries, and no artificial barriers to entry. A network that doesn’t rely on trust is not just novel; it’s resilient by design, and creates space for permissionless innovation.
At Block, we’re building toward a world where bitcoin is everyday money—not just a store of value, but a practical tool for daily spending, buying, selling, and sending. We're committed to growing the bitcoin ecosystem, from bitcoin mining and self-custody tools, to the user-friendly applications that make bitcoin accessible for all people and small businesses. We believe bitcoin is the foundation for a more open, accessible, and equitable financial system, so we’re building tools that support the growth of the bitcoin ecosystem and lower the barrier to entry.
But to realize this vision, we need Congress to modernize the regulatory frameworks to support bitcoin as a truly functional and accessible form of everyday money. Clear, fit-for-purpose policy is essential to fostering innovation while maintaining appropriate safeguards. We believe there are three key steps Congress should take:
1. Establish Federal Licensing Clarity
Today, companies that make digital assets accessible to consumers must navigate fragmented and inconsistent federal and state laws. This complexity stifles innovation, raises barriers for market entry, and leaves consumers with limited access to modern financial tools. This lack of clarity for how companies should be licensed under existing regulatory frameworks has also resulted in an unclear registration process and federal agencies regulating through enforcement. A comprehensive federal market structure framework would clearly define which digital assets require regulation by the SEC vs. the CFTC, and under what conditions. Under the CLARITY Act for example, which was passed by the House of Representatives with strong bipartisan support, bitcoin would fit under the definition of a Digital Commodity and would be under the jurisdiction of the CFTC. Other ancillary activities - such as validating, mining, and developing software - would be explicitly excluded from the scope of the CFTC or SEC’s authority.
As policymakers consider how best to regulate digital assets, it's important to distinguish between digital assets broadly and the unique role of bitcoin. While digital assets encompass a variety of tokens and technologies, we believe bitcoin stands apart. Its fixed supply cap of 21 million coins ensures scarcity and predictability. Its decentralized, permissionless, and open-source blockchain architecture makes it one of the most transparent and democratically governed forms of money ever created. And its fungibility ensures that each unit is interchangeable and equal in value. These qualities make bitcoin uniquely positioned to function as a store of value, with the potential to operate as everyday money. For Congress to clearly define bitcoin as a Digital Commodity and regulate it as such would be an important and welcome advancement in modernizing financial regulation in the US.
We support these provisions being included in any market structure bill taken up by the Senate, and urge Congress to pass a unified federal licensing framework that would reduce legal uncertainty, eliminate regulation by enforcement, and enable responsible innovation while maintaining strong consumer protections.
2. Protect Core Bitcoin Infrastructure Providers
A fundamental provision we would like to see included in market structure legislation is the Blockchain Regulatory Certainty Act, which would codify a clear principle: regulatory obligations related to money transmission should apply only to those who have control over customer funds. Although FinCEN clarified this principle in 2019, statutory certainty is needed to protect participants that do not custody customer funds—like software developers, node operators, miners, and wallet providers—who support the network but don’t actually control funds. This legislation would ensure that essential, non-controlling infrastructure can continue to operate without being subject to regulatory frameworks designed for custodial intermediaries. This protection for non-controlling blockchain developers was included in the CLARITY Act that passed the House with broad bipartisan support.
3. Simplify Bitcoin Taxation for Everyday Transactions
As of today, bitcoin is subject to capital gains tax - meaning every time somebody uses it to purchase something like coffee or groceries, they incur an administrative hurdle that disincentivizes everyday use. A de minimis exemption for small-dollar bitcoin transactions would align its tax treatment with that of foreign currency, where small gains or losses are already exempt. This would modernize the tax code, reduce compliance burdens, lower transaction costs, promote innovation in payments, and enhance the utility of bitcoin - making it more practical for everyday use. As we prepare to launch bitcoin payments on Square later this year, this policy shift is essential to ensuring bitcoin can be more widely adopted as a medium of exchange.
It is encouraging to see Congress working towards adopting a de minimis tax exemption for digital assets. We applaud Congressional champions for continuing to support this important policy, and are supportive of this common sense measure being included in the next possible legislative package taken up for consideration by Congress.
—
Bitcoin isn’t about theory — it’s about solving real problems. Its decentralized and borderless nature provides financial autonomy, making it viable as both a store of value and a medium of exchange. Whether it's sending value across borders, or seamlessly transacting with small businesses, bitcoin has the real-world potential of modernizing payments and addressing everyday financial needs. Congress has the opportunity to support practical innovation by updating laws that recognize bitcoin’s potential to be used as everyday money — empowering Americans to transact freely and affordably. It’s time for Congress to pass a comprehensive federal licensing framework and unlock a tax barrier for small-dollar bitcoin transactions to be a viable medium of exchange.