Bundestag debates Bitcoin policy: CDU/CSU wants to preserve holding period exemption, China tightens regulation

Clear divisions in the Bundestag

The German Bundestag debated three AfD motions on Bitcoin, the Digital Euro, and cash, revealing sharply divergent party positions on cryptocurrency policy ^[1]. The discussion centered on the tax-free holding period for crypto gains and the question of a possible strategic Bitcoin reserve modeled on the US approach.

The debate made clear: While the SPD, Alliance 90/The Greens, and The Left are fundamentally skeptical of Bitcoin, the CDU/CSU demonstrated a more differentiated stance, advocating for the preservation of existing regulations ^[1].

CDU/CSU defends tax-free holding period

The central question of tax treatment for Bitcoin gains divides the Bundestag. Max Lucks (Alliance 90/The Greens) called the one-year tax-free holding period a "glaring injustice" and demanded its abolition ^[1]. The SPD and The Left also positioned themselves for eliminating the regulation.

The CDU/CSU, however, clearly opposed these demands. Georg Günther (CDU/CSU) emphasized that "the current regulation, keeping gains tax-free after the one-year period, follows a clear logic" and applies the same way to gold or foreign currencies ^[1]. His party colleague Lukas Krieger reinforced: "As CDU/CSU, we continue to clearly advocate for maintaining the one-year holding period for tax-free gains" ^[1].

Since the CDU/CSU faction holds more than 50 percent of Bundestag seats together with the AfD, the holding period should remain secure for now ^[1].

Divided opinions on strategic Bitcoin reserve

The AfD's proposed strategic Bitcoin reserve modeled on the US approach also met with mixed reactions. Dr. Philipp Rottwilm (SPD) called the idea "economically absurd" and argued that Bitcoin had "no underlying real economic performance" ^[1].

Georg Günther (CDU/CSU) at least showed openness to the idea of the state holding confiscated Bitcoin long-term—a stark contrast to Saxony's sales strategy last year ^[1]. However, he rejected a complete strategic reserve due to price volatility.

Dirk Brandes (AfD) advocated for Bitcoin as "the first functioning digital stateless money in the world—decentralized, limited, non-manipulable" and criticized: "Germany, meanwhile, debates how to slow down Bitcoin" ^[1].

China tightens crypto policy and targets stablecoins

While Germany debates regulatory frameworks, China reinforces its restrictive stance. On November 28, 2025, China's central bank held a coordination meeting with 13 major authorities to combat "speculative trading and illegal activities involving cryptocurrencies" ^[2].

For the first time, stablecoins were explicitly classified as a "central risk factor" ^[2]. The authorities warn that stablecoins fail to meet AML/KYC requirements and could be used for money laundering and illegal capital flows ^[2]. They are now treated the same as other cryptocurrencies and are completely prohibited.

Notably: Bitcoin mining, which was at the center of regulatory measures in 2021, received no mention in the current resolution ^[2]. Industry reports suggest that some local government officials are cooperating with mining companies to stabilize power grids and utilize sustainable surplus energy ^[2].

Outlook

The contrasting developments in Germany and China demonstrate the range of regulatory approaches. While China maintains its strict ban, Germany shows signs of compromise: The CDU/CSU as the governing party could prevent the abolition of the tax-free holding period without adopting more far-reaching pro-Bitcoin positions. The coming months will show whether this course holds.