Key Takeaways
- Congressman Matt Gaetz introduces a bill to allow federal income tax payments in Bitcoin.
- The bill requires the Treasury Secretary to develop regulations for Bitcoin tax payments.
- This follows increased political support for Bitcoin, with major figures and campaigns embracing it.
Congressman Matt Gaetz (R-FL) has introduced a bill to allow federal income tax payments in Bitcoin.
Reported first by the Daily Wire, the legislation aims to amend the Internal Revenue Code of 1986, directing the Treasury Secretary to create a plan for accepting Bitcoin.
Gaetz stated:
By enabling taxpayers to use Bitcoin for federal tax payments, we can promote innovation, increase efficiency, and offer more flexibility to American citizens. This is a bold step toward a future where digital currencies play a vital role in our financial system, ensuring that the U.S. remains at the forefront of technological advancement.
Regulations for BTC
The bill mandates the Treasury Secretary to establish regulations for accepting Bitcoin, including specifying when payments are considered received and converting Bitcoin to its dollar equivalent immediately.
It also includes provisions for handling related non-tax matters, contracts, fees, and liability.
The Bill reads:
The Secretary shall develop and implement a method to allow for the payment with bitcoin of any tax imposed on an individual under this title,”
The Secretary shall prescribe such regulations as the Secretary deems necessary to receive payment by bitcoin, including regulations that specify when payment by such means will be considered received, require the immediate conversion of any bitcoin amount received to its dollar equivalent at the conclusion of any transaction.
Surge in Bitcoin support
This announcement follows a surge in Bitcoin support among U.S. politicians.
Presidential candidates Donald Trump and Robert F. Kennedy Jr. both accept Bitcoin payments.
Additionally, the Biden campaign is reportedly considering accepting cryptocurrency donations and will participate in a Bitcoin roundtable in Washington D.C. hosted by Congressman Ro Khanna.
Coinbase CEO Brian Armstrong also recently met with both Democrat and Republican senators to discuss creating clear rules for the cryptocurrency industry.
Furthermore, Congressman Thomas Massie announced plans to introduce a bill to end the Federal Reserve after reading The Bitcoin Standard.
