Matthew Cole, CEO of Strive Asset Management, has publicly called for the abolition of Bitcoin capital gains tax provisions in the United States. His argument: the current tax treatment keeps Bitcoin locked up as a speculative asset instead of letting it circulate as everyday money. Cole made the case this week, pushing for a policy shift that would require a major rewrite of federal tax law.
Why tax treatment matters
Right now, every time someone spends Bitcoin that has appreciated in value, they trigger a capital gains event. That means a taxable transaction on a cup of coffee or a used bike. Cole says that friction kills the incentive to use Bitcoin for routine purchases. Instead, holders hoard it, hoping for price gains, and the network never gets the transactional volume that would make it a real currency.
He's not the first to point out the problem, but coming from the CEO of an asset manager that runs a Bitcoin strategy ETF, it carries weight. Strive Asset Management has positioned itself as a pro-Bitcoin firm, and Cole's proposal tracks with a broader push inside the industry to get lawmakers to reconsider how crypto is taxed at the point of sale.
What would have to change
Abolishing capital gains provisions for Bitcoin means either exempting it entirely from the tax code or creating a de minimis exemption for small transactions — the kind you'd make at a register. The IRS would need legislation from Congress to make that happen. No bill has been introduced this session that matches Cole's ask, but the idea has been floated before in various forms, including past proposals for a $200 de minimis exemption for crypto. Cole is arguing for something more sweeping.
The challenge ahead
The political math is difficult. The U.S. federal government is looking for revenue, not tax breaks, especially after the 2025 budget fights. A capital gains exemption for one asset class would face pushback from both parties, even if some Republicans are friendly to crypto. And the IRS has spent years building rules to tax crypto transactions — unwinding that would be a heavy lift.
Still, Cole's point is concrete: as long as spending Bitcoin triggers a tax headache, it won't be spent. The network stays a digital gold vault rather than a payments rail. Whether lawmakers listen is the open question — and the industry will be watching for any response from the House Ways and Means Committee or the Treasury Department in coming months.
