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- Rep. Matt Gaetz wants people to pay federal taxes using Bitcoin to update the tax system.
- Colorado accepts cryptocurrency for taxes, and Gaetz wants this for all states.
- Congress working together to regulate stablecoins, showing they’re interested in crypto.
Florida Republican Congressman Matt Gaetz introduced a bill on Tuesday that would authorize federal income taxes to be paid using Bitcoin. This proposed legislation, if enacted, would require the U.S. Secretary of the Treasury to develop a plan to facilitate Bitcoin payments for federal taxes.
Florida Republican Congressman Matt Gaetz introduced a bill on Tuesday that would require the U.S. Treasury Secretary to develop a plan to allow federal income taxes to be paid via Bitcoin. Currently, only Colorado allows the use of cryptocurrency to pay taxes.…— Wu Blockchain (@WuBlockchain) June 26, 2024
Gaetz stated that his bill aims to modernize the U.S. tax system by incorporating digital currencies. He believes that allowing individuals to use Bitcoin for taxes will stimulate innovation, streamline processes, and provide Americans with more payment options. Gaetz views this as a crucial step towards integrating digital currencies into the financial system and maintaining the U.S.’s technological leadership.
Currently, only Colorado allows residents to use crypto assets to pay taxes. Since September 2022, Colorado’s tax department has been accepting crypto for various taxes, including business and personal income taxes. Gaetz’s bill aims to expand this practice nationwide, potentially making the U.S. the first country to accept Bitcoin for national taxes.
Senator Ted Cruz from Texas has also proposed a bill that would require stores in Capitol Hill to accept cryptocurrency as payment. However, this bill has not yet been voted on. Additionally, lawmakers have made some progress on bills focused on regulating stablecoins and the broader crypto industry.
The Republican-led Financial Innovation and Technology for the 21st Century Act (FIT21) passed the U.S. House in May but is unlikely to become law this year due to the Senate not yet producing a counterpart bill and decreased interest in crypto legislation.
Both Republicans and Democrats agree on the need for stablecoin regulations. Senators Kirsten Gillibrand (D-N.Y.) and Cynthia Lummis (R-Wyo.), along with Representatives Patrick McHenry (R-N.C.) and Maxine Waters (D-Calif.), are leading this effort in Congress.
If Gaetz’s bill passes, it could significantly alter how taxes are paid in the U.S. This may prompt other countries to follow suit. Utilizing Bitcoin to pay federal taxes would demonstrate a strong commitment to innovation in financial technology.
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