A Florida lawmaker has introduced a bill that would give the green light to Bitcoin as an approved payment method for federal taxes.
On Tuesday, Republican Representative Matt Gaetz proposed a bill that would allow US citizens to settle their federal income tax liabilities using Bitcoin (BTC). Gates said that a modern tax system would foster innovation, increase efficiency, and maintain the United States’ leadership in technological progress.
for every Official letter From Gates’ staff, the policymaker was inspired to pursue new legislation after personally witnessing the impact of Bitcoin in El Salvador. “This is a bold step toward a future in which digital currencies play a vital role in our financial system,” Gates said.
Under the leadership of pro-crypto President Nayib Bukele, El Salvador became the first country in the world to legalize Bitcoin. Despite scrutiny from the International Monetary Fund and even the United States, the country has pushed ahead with its Bitcoin strategy and generated billions of dollars in unrealized profits from its investments.
Bitcoin Taxes and Crypto Bills
Gaetz’s Bitcoin-for-taxes bill is new and has not yet been debated in Congress. However, if the bill is introduced, it could reverse part of Colorado law, which allows taxes to be paid in cryptocurrency. Colorado began its cryptocurrency tax payment program in late 2022 and is the only jurisdiction across state lines with such policies.
Meanwhile, bipartisan lawmakers successfully passed the Financial Innovation and Technology for the 21st Century Act, or FIT 21. The bill seeks to streamline oversight of cryptocurrencies by dividing regulatory responsibilities between the Commodity Futures Trading Commission and the Securities and Exchange Commission.
As Cryptocurrency News previously reported, Senators Maxine Waters and Patrick McHenry are also working on stablecoin bonds that would allow banks and other local financial houses to issue tokens pegged to the US dollar.