Jack Dorsey of Square Advocates for Tax Exemption on Minor Bitcoin Transactions.

Jack Dorsey, the founder of Square, a payments company, has called for a de minimis tax exemption on minor Bitcoin (BTC) transactions to enhance the cryptocurrency’s practicality for day-to-day payments.

“Our goal is to make Bitcoin everyday money as soon as possible,” Dorsey stated on Wednesday, following Square’s implementation of Bitcoin payment features for merchants using the company’s checkout and point-of-sale systems.

His remarks captured the attention of Wyoming Senator Cynthia Lummis, who proposed a de minimis tax provision as part of a separate crypto tax bill in July, which exempts BTC transactions that are $300 or less from capital gains tax, with an annual exemption limit of $5,000.

According to current US tax regulations, all Bitcoin transactions are subject to capital gains tax, which holds for the holder if BTC’s price surpasses the initial purchase cost, thereby restricting Bitcoin’s function as a medium of exchange.

Bitcoin proponents continue to advocate for tax exemptions on small BTC transactions to promote the use of the digital currency as a peer-to-peer cash system, as envisioned in BTC creator Satoshi Nakamoto’s whitepaper, in addition to its role as a store-of-value asset.

Related: US lawmakers navigate crypto tax policies amidst government shutdown

Crypto industry leaders and advocates call for tax exemption

The United States Senate Committee on Finance convened a hearing in October to examine crypto tax regulations in light of the US government shutdown.

Lawrence Zlatkin, the vice president of tax at the crypto exchange Coinbase, urged the Senate to formalize a de minimis tax exemption for crypto transactions up to $300.