A Florida lawmaker has introduced a bill authorizing Bitcoin as a means of paying federal taxes.
On Tuesday, Republican Rep. Matt Gaetz proposed legislation that would allow U.S. citizens to use Bitcoin (BTC) to settle their federal income tax obligations. Gaetz said a modernized tax system would foster innovation, increase efficiency and maintain America’s leadership in technological advancement.
According to an official statement from Gaetz staff, policymakers were inspired to push for new legislation after witnessing first-hand the impact Bitcoin was having on El Salvador. “This is a bold step toward a future where digital currencies play a critical role in our financial system,” Gaetz said.
Under President Nayib Bukele, a cryptocurrency advocate, El Salvador became the first country in the world to legalize BTC. Despite scrutiny from the IMF and even the United States, the country went ahead with its BTC strategy and earned billions of dollars in unrealized profits from its investments.
Bitcoin Tax and Cryptocurrency Bills
Gaetz’s Bitcoin for Taxes bill is new and has not yet been discussed in Congress. However, if the bill advances, it could mirror portions of Colorado state law authorizing paying taxes with cryptocurrencies. Colorado launched a cryptocurrency tax payment program in late 2022 and is the only jurisdiction statewide to implement such a policy.
Meanwhile, lawmakers from both parties successfully advanced the Financial Innovation and Technology for the 21st Century Act (FIT 21). The bill seeks to normalize cryptocurrency oversight by splitting regulatory responsibilities between the Commodity Futures Trading Commission and the Securities and Exchange Commission.
As Crypto News previously reported, Senators Maxine Waters and Patrick McHenry are supporting the STAY bill, which would allow banks and other local financial institutions to issue tokens pegged to the U.S. dollar. We are developing Blockcoin banknotes.