- U.S. Representative Matt Gaetz, a Republican from Florida, introduced a bill that will allow federal taxes to be paid with Bitcoins if passed.
- Gaetz believes that this bill not only puts the U.S. at the forefront of Bitcoin development but will also make it easier for Americans to pay their taxes with flexible payment options.
- The bill comes right at the heels of the crypto bill, also known as FIT21. It has already been passed by the U.S. House of Representatives but is yet to be passed by the Senate.
A rather interesting bill has been introduced by the U.S. Representative Matt Gaetz, a Republican from Florida, which allows federal income taxes to be paid in Bitcoin.
Gaetz feels that this step will increase efficiency, promote innovation, and make it easier for Americans to pay taxes by giving them more options to choose from.
“This is a bold step toward a future where digital currencies play a vital role in our financial system, ensuring that the U.S. remains at the forefront of technological advancement.” – Matt Gaetz
He also referred to a statement made by former U.S. President Donald Trump where he said that he wants America to lead Bitcoin development. This is in fact true.
Donald Trump has always been transparent about his support for digital currencies. For example, last week, his presidential campaign announced that they would start taking cryptocurrency donations to build a ‘crypto army’ leading up to Election Day.
This move can be seen as Trump trying to position himself as a pro-crypto candidate. Young voters who are increasingly relying on digital assets for investments might be persuaded to vote in his favor with this move.
At the Heels of the Crypto Bill
The U.S. government has lately been taking a special interest in digital currencies. The Bitcoin bill comes just a month after the crypto bill was passed by the U.S. House of Representatives. The U.S. Senate is yet to approve it, though.
The crypto bill, known as the Financial Innovation and Technology for the 21st Century Act (FIT 21), classifies cryptos as commodities rather than securities.
This means that the regulatory frameworks that govern its operations will change and the primary supervisory responsibility will be shifted from the SEC (Securities and Exchange Commission) to the Commodity Futures Trading Commission (CFTC).
The SEC’s Opposition to the Bill
While the crypto industry has welcomed the change, the SEC is not so happy about it. It feels that this move will leave regulatory gaps and undo decades’ worth of oversight of investment contracts.
SEC Chairperson Gary Gensler that under the existing model, crypto assets are subjected to the same laws in case of fraud, bankruptcy, and other unpleasant scenarios. However, this new bill will take away all these legal protections, putting the whole market and the investors at risk.
However, there’s nothing much the SEC can do to challenge this decision except appeal against it, which has to be done within 60 days of the bill passing.
