Paying with stablecoins would have tax relief in the U.S., but not bitcoin

• The Treasury would update the list of stablecoins eligible for the benefit every three months.
• The new provisions could apply starting January 1, 2027, if approved.

Paying for a coffee with an eligible stablecoin could have a different tax treatment than doing so with bitcoin under a new proposal presented in the United States.

The initiative, called "Digital Asset Tax Alignment Act," was introduced on September 30 by Senator Steve Daines, along with Cynthia Lummis, Bernie Moreno, and Tim Scott. The text proposes that certain purchases of goods and services made with dollar-pegged stablecoins would not trigger the recognition of gains or losses on the asset used.

The benefit would not apply to just any stablecoin. The proposal states that the asset must meet requirements related to its issuer and appear on a list that the Treasury would update at least quarterly. Additionally, the taxpayer would need to have acquired the stablecoin at a price within a 3% margin of USD 1.

Unlike other proposals that suggest exemptions conditioned on a maximum amount, Senator Daines' text does not set a value limit for purchases that could qualify for the benefit. However, it also includes exclusions for certain operators, brokers, and merchants, meaning not all uses of these assets would be covered.

The contrast with bitcoin would be direct. Current IRS rules consider digital assets as property and establish that using them to acquire goods or services constitutes a disposition. Therefore, the taxpayer must determine the difference between the asset's cost basis and its value at the time of spending.

Thus, a purchase of USD 5 with a compliant stablecoin would not generate a recognizable gain or loss on the token under that regime. The same purchase made with bitcoin would still require the corresponding tax calculation.

The proposal also includes a separate exception for certain transaction fees. Digital assets used to pay for block costs, gas, or priority could be excluded from gain or loss recognition when their added value does not exceed USD 10 and other stipulated conditions are met.

This relief would be more limited than that proposed for purchases with stablecoins. Among the exclusions are certain operators and taxpayers with a high volume of transactions. If the proposal is approved without changes, both provisions would begin to apply to transactions made from January 1, 2027.

The text adds to other proposals seeking to modify the tax treatment of transactions involving digital assets. Its uniqueness lies in proposing an exemption for certain purchases with stablecoins without establishing a general monetary limit, while maintaining for bitcoin the principle that spending the asset may generate a tax obligation.

For now, the change is not in effect. Current IRS rules continue to apply, and any modification will depend on the proposal advancing and being approved. The proposal also leaves several details regarding eligibility, record-keeping, and practical application of the new provisions in the hands of the Treasury.

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