German Bundestag Rejects Greens Bill to End Crypto Tax Exemption

Germany’s Bundestag has upheld the one-year capital gains tax exemption for crypto holdings after rejecting a Green Party bill. The proposal failed first in the Finance Committee on May 21 with only Die Linke support, then was defeated in the full parliament on May 22. Lawmakers cited innovation benefits and domestic custody activity, while the Frankfurt School estimated the change could have raised up to €11.4 billion annually. The outcome removes near-term tax-driven selling pressure for Bitcoin and Ethereum holders and keeps Germany among Europe’s more crypto-friendly jurisdictions, though EU DAC8 reporting rules remain in force since January 2026.