Block founder Jack Dorsey is advocating for a federal tax exemption on small Bitcoin transactions, aiming to ease the reporting burden on everyday users. This push follows the launch of a new Bitcoin wallet by Square, designed for small businesses. Dorsey is calling for the revival of a legislative effort from July that sought similar exemptions. Senator Cynthia Lummis, who has previously supported crypto-friendly amendments, responded positively to Dorsey's initiative. Currently, the IRS classifies cryptocurrency as property, requiring detailed reporting even for minor transactions. While experts acknowledge that a tax exemption could simplify paperwork, they caution that Bitcoin's volatility remains a significant hurdle to widespread adoption.