Jack Dorsey, CEO of Block Inc. and a prominent Bitcoin advocate, has urged U.S. regulators to grant tax-free status for everyday Bitcoin transactions, such as small purchases like coffee or groceries, to accelerate cryptocurrency adoption, as reported by CoinDesk and Bloomberg on October 9, 2025. For crypto investors, policy analysts, and fintech enthusiasts searching Jack Dorsey Bitcoin tax-free 2025, Bitcoin payment tax exemption, or crypto adoption US, the proposal, made on October 8, 2025, aims to simplify Bitcoin’s use for daily transactions, aligning with Block’s $5 billion Bitcoin treasury holdings and global trends like $48.67 billion in crypto inflows. With Bitcoin priced at $62,000 (October 10, 2025, 12:56 PM IST), Dorsey’s push targets the $1.5 trillion crypto market, where US firms hold $115 billion in Bitcoin treasuries. The proposal, if approved, could boost Bitcoin’s daily transaction volume, currently at $50 billion globally.
This call, amidst global developments like PayPay’s 40% stake in Binance Japan and TCS’s 1 GW AI data center, underscores Bitcoin’s growing mainstream traction.
Proposal Details: Tax-Free Bitcoin Payments
Dorsey’s proposal focuses on exempting small, everyday Bitcoin transactions from capital gains taxes:
- Scope: Tax exemption for Bitcoin payments under $200 per transaction (e.g., coffee, groceries).
- Rationale: Current US tax rules treat Bitcoin as property, taxing gains on every transaction, discouraging its use for daily purchases.
- Proposed Impact: Could increase Bitcoin’s daily transaction volume by 20%, adding $10 billion annually.
- Target Audience: Retail users and merchants using Block’s Cash App, which processes $1 billion in Bitcoin transactions monthly.
- Regulatory Context: Submitted to the IRS and Treasury Department, with a 2026 review expected.
Jack Dorsey: “Taxing every Bitcoin coffee purchase kills its potential as currency. Let’s make it seamless.”
| Metric | Details |
|---|---|
| Exemption Threshold | $200 per transaction |
| Current Tax | Capital gains on all BTC transactions |
| Projected Volume Increase | $10B annually |
| Target Platform | Block’s Cash App |
| Review Timeline | 2026 |
Strategic Context: Bitcoin’s Mainstream Push
Dorsey’s proposal aligns with growing institutional and retail crypto adoption:
- Market Size: $1.5 trillion global crypto market, with Bitcoin at $1.2 trillion market cap.
- Block’s Role: Holds 80,000 BTC ($5 billion), 4.3% of US firms’ $115 billion Bitcoin treasuries.
- US Adoption: $48.67 billion in global crypto inflows, with US contributing 60% via ETFs and treasuries.
- Global Trends: Japan’s crypto market grows with PayPay’s Binance Japan stake; India sees $1 billion inflows.
- Regulatory Shift: SEC’s 2024 crypto guidelines eased institutional entry, but IRS tax rules remain a barrier.
Implications and Challenges
- Opportunities:
- Retail Adoption: Tax-free status could drive 30% growth in Bitcoin retail transactions.
- Merchant Uptake: 10,000 US merchants, including Starbucks, could adopt Bitcoin via Cash App.
- Block’s Growth: Cash App’s $1 billion monthly Bitcoin volume could double by 2027.
- Challenges:
- Regulatory Hurdles: IRS may resist due to $500 million in potential tax revenue loss annually.
- Volatility: Bitcoin’s 20% price swings in 2025 deter merchants.
- Scalability: Blockchain’s 7 transactions per second limit hinders mass adoption.
Outlook: Bitcoin as Everyday Currency
Dorsey aims for 10 million daily Bitcoin transactions in the US by 2028 if tax exemptions are approved. Block plans to expand Cash App’s Bitcoin features, integrating with PayPay’s Binance Japan partnership for global reach.
Conclusion: Dorsey’s Bitcoin Tax-Free Vision
Jack Dorsey’s tax-free Bitcoin payment proposal in October 2025 seeks to make Bitcoin a seamless currency for daily use, leveraging Block’s $5 billion BTC holdings and Cash App’s platform. Amid $48.67 billion global crypto inflows, the plan could reshape the $1.5 trillion crypto market, but regulatory and scalability hurdles loom. For Bitcoin, it’s a bold push—will it become everyday money? The blockchain buzzes. coindesk
