Congressman Matt Gaetz has put forward a proposal for a bill that would revolutionize the way Americans pay their federal income taxes by allowing Bitcoin as a form of payment. This innovative move is aimed at promoting efficiency and fostering innovation within the U.S. financial system.
The bill, introduced by Republican Congressman Matt Gaetz, seeks to amend the Internal Revenue Code of 1986 to include Bitcoin as a valid form of payment for federal taxes. It directs the Treasury Secretary to establish a framework for accepting Bitcoin payments and converting them into dollars immediately after transactions. Gaetz believes that this change will provide taxpayers with greater flexibility and keep the United States at the forefront of technological advancements.
Inspired by his recent visit to El Salvador, where Bitcoin has been adopted as a legal tender, Gaetz sees an opportunity for the U.S. to learn from their approach to integrating digital currencies into the national financial system. With support from former President Donald Trump, who has criticized President Joe Biden’s policies on cryptocurrency, Gaetz’s bill aims to modernize the federal tax system by officially recognizing Bitcoin as a payment method for federal income taxes.
Several U.S. states, such as New Jersey, Kentucky, and Colorado, have already implemented their own crypto tax regulations, paving the way for cryptocurrency payments for state taxes. Gaetz’s bill, if enacted, would mark a significant step towards integrating cryptocurrencies into the mainstream financial system, potentially increasing the adoption of digital currencies.
As Bitcoin continues to trade at $61,551, with a recent increase of over 2% in the past 24 hours, the market’s response to Gaetz’s bill and its potential impact on Bitcoin’s value and adoption will be closely monitored in the coming months. Additionally, the recent approval of FIT21 by The House, a regulatory framework bill assigning oversight of crypto trading to either the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC), aims to create clarity in determining if a digital asset is a commodity or security, addressing a key obstacle to the industry’s growth in the U.S.