‘Total Lie’: Brian Armstrong and Coinbase Execs Deny Lobbying Against Bitcoin

Coinbase executives, including CEO Brian Armstrong and Chief Policy Officer Faryar Shirzad, have strongly pushed back against recent allegations claiming the crypto exchange is actively lobbying against a crucial tax exemption for Bitcoin in order to boost its own stablecoin revenues.  

The controversy erupted on X (formerly Twitter) on Wednesday, with high-profile industry of the likes of billionaire Jack Dorsey joining the fray. 

Some Bitcoin supporters have alleged that Coinbase has been quietly telling Washington lawmakers that a de minimis tax exemption for Bitcoin is unnecessary and would be “DOA” (dead on arrival) because “no one is using Bitcoin as money.”  

A de minimis tax exemption is widely considered the holy grail for Bitcoin adoption as a medium of exchange. 

If passed, it would eliminate capital gains taxes and IRS reporting requirements on everyday cryptocurrency transactions. Buying coffee, for instance, would no longer be a taxable event.   

However, some to some allegations, rather than supporting this relief for Bitcoin, Coinbase is pushing for the exemption to exclusively apply to regulated, dollar-pegged stablecoins like USDC.  

The USDC cash cow

Coinbase has a massive financial incentive to promote USDC over Bitcoin for payments, which is why the accusations quickly gained traction. 

The crypto behemoth generated an estimated $1.35 billion in stablecoin revenue in 2025, which marks a 48% year-over-year increase. 

This revenue comes almost entirely from interest earned on U.S. Treasuries held in the USDC reserve pool. 

Following the passage of the landmark GENIUS Act in July 2025, some analysts projected that Coinbase’s stablecoin revenue could surge up to 7x if USDC adoption expands into mainstream payments.  

Every consumer who uses USDC for a transaction instead of Bitcoin leaves more fiat dollars sitting in Coinbase’s reserve pool. This makes it possible for the exchange giant to generate risk-free yield. 

The pushback 

Coinbase leadership immediately went on the defensive, shutting down the rumors.

CEO Brian Armstrong called the claims “misinformation.”

“Not sure where you’re getting this misinformation (perhaps you can share?) but it’s totally false. I’ve spent a bunch of time lobbying for Bitcoin’s de minimis tax exemption, and will continue doing so. It’s obviously the right thing,” he said. 

Chief Policy Officer Faryar Shirzad has also stated that the accusations are a “total lie.” 

Dorsey joins the fray 

Dorsey, a staunch Bitcoin maximalist whose company heavily relies on Bitcoin’s success as a payment network, also directly pressed the Coinbase CEO, asking: “Hope this is true for de minimis as well. @brian_armstrong?”

Armstrong quickly confirmed that the company was not lobbying against the exemption.