Regulation
US Congressman Matt Gaetz is proposing a bill to accept Bitcoin for federal tax payments
Congressman Matt Gaetz, a Republican from Florida, has proposed a bill that would allow federal income taxes to be paid in Bitcoin. Initially reported by the Daily Wire, this legislation seeks to amend the Internal Revenue Code of 1986 by directing the Secretary of the Treasury to develop a strategy for adding Bitcoin to tax payment options.
Demand for Bitcoin grows among politicians
Matt Gaetz is proposing legislation that would allow federal income tax to be paid using Bitcoin. If passed, this bill would revise the Internal Revenue Code of 1986 by requiring the Secretary of the Treasury to create a plan to accept widely used cryptocurrency.
Gaetz said, “By allowing taxpayers to use Bitcoin to pay their federal taxes, we can foster innovation, increase efficiency, and provide greater flexibility to American citizens. This is a bold step toward a future where digital currencies play a vital role in our financial system, ensuring the United States remains at the forefront of technological advancement.”
The bill requires the Secretary of the Treasury to establish rules for the acceptance of Bitcoin, highlighting the conditions under which payments are considered received and requiring the immediate conversion of Bitcoin to its dollar value. Additionally, the legislation includes guidance for managing non-tax matters, contracts, fees and associated liabilities.
This development comes amid a surge in support for Bitcoin among US politicians. Presidential candidates Donald Trump and Robert F. Kennedy Jr. are already accepting Bitcoin contributions, and reports suggest that Biden’s campaign could soon follow by accepting cryptocurrency donations.
In response to Trump’s pro-Bitcoin stance, Biden administration officials will participate in a Bitcoin roundtable in Washington DC, hosted by Congressman Ro Khanna in the coming weeks.
Meanwhile, Coinbase CEO Brian Armstrong has been actively engaging with Democratic and Republican senators in Washington DC to advocate for clear regulatory guidelines for the cryptocurrency market.