Rep. Matt Gaetz (R-Fla.) launched a invoice on June 25 that might require the IRS to just accept federal tax funds in Bitcoin.
Gates highlighted the potential advantages of this “daring transfer,” saying the invoice would maintain the U.S. on the forefront of technological development.
The congressman mentioned:
“My landmark invoice would modernize our tax code by permitting federal revenue tax to be paid in Bitcoin — a daring step towards a future the place digital currencies play an important position in our financial system.”
Bitcoin Tax
The invoice proposes permitting taxpayers to make use of Bitcoin to pay their federal taxes, which Gates believes will “spur innovation, enhance effectivity, and supply extra flexibility to the American individuals.”
If handed, the invoice would direct Treasury Secretary Janet Yellen to develop a plan to just accept Bitcoin as a authorized foreign money for paying federal taxes. Yellen has beforehand criticized Bitcoin and spoken out towards cryptocurrencies.
The senator famous that his current go to to El Salvador, the primary nation to undertake Bitcoin as authorized tender in 2021, performed a significant position in his choice to introduce the invoice. He mentioned Bitcoin has helped promote financial stability and job creation within the Central American nation.
The lawmakers' proposal represents a significant shift in strategy to integrating digital currencies into the mainstream monetary system and displays a rising recognition of their potential to reshape financial practices.
Gaetz's proposal follows comparable measures by a number of US states: Colorado will grow to be the primary state to permit tax funds in cryptocurrencies in 2022, whereas Louisiana not too long ago handed a invoice defending the best to self-custody and mining of cryptocurrencies.
In the meantime, Texas, Utah, New Jersey and Kentucky are additionally shifting towards comparable insurance policies.
Broader regulatory efforts
The introduction of the invoice comes amid ongoing debate in Congress over easy methods to regulate the burgeoning cryptocurrency business.
The Home of Representatives not too long ago handed FIT21, a regulatory framework invoice that might give full oversight authority over cryptocurrency buying and selling to both the Securities and Alternate Fee (SEC) or the Commodity Futures Buying and selling Fee (CFTC).
The invoice additionally seeks to ascertain a transparent means of classifying digital property as commodities or securities, which has been one of many fundamental obstacles to the business's progress in the USA.
The invoice handed the Home with robust bipartisan assist and is anticipated to have comparable assist within the Senate, which has not but accredited the invoice.
