As crypto popularity gains momentum, US lawmakers are exploring ways to marry digital assets with traditional finance. In a recent report, the US representative Matt Gaetz presented a bill at the House of Representatives.
The new bill suggests Americans should be allowed to pay their taxes using crypto assets. The Gaetz proposal presents various amendments to the existing Internal Revenue Code 1986.
Representative Matt Gaetz Introduces Tax Bill
The representative urged the House to consider introducing new payment methods. The bill will undergo various reviews before it is implemented as law.
However, if the bill is approved, the Secretary of the Treasury will be tasked to upgrade the financial system to accept Bitcoin payments.
The proposed system upgrades will mandate the treasury to integrate a Bitcoin dollar conversion feature and set a limit on the amount of Bitcoin payment. Also, the Internal Revenue Service (IRS) will be required to enter a definitive agreement to accept Bitcoin payments.
Guiding Americans to meet their tax responsibilities, the bill suggests that the tax regulators will integrate payment methods supporting Bitcoin. The Gaetz bill subjects taxpayers to credit card charges and other transaction cost.
Similar to the existing laws, the new bill highlights the need to uphold confidentiality and liability. While formulating the bill, Gaetz ensured that integrating crypto payment features protects taxpayers.
He explained that the introduction of crypto payment aimed at promoting innovation in the American financial sector. He also believes that integrating advanced financial tools such as crypto will improve the efficiency and reliability of the taxation system.
Legislators Propose New Rules to Promote Innovation in the US
Gaetz stated that the new bill presents the US in the frontline of tech development. With the changes in the financial sector, upgrading the American taxation system will promote innovation and development.
Gaetz’s bill came days after he attended the second inauguration of El Salvador president Nayib Bukele. Gaetz has been a critical supporter of crypto assets and led American legislators to develop friendly crypto policies to replicate El Salvador.
His crypto campaigns have received a positive reception from some of the legislators including his closest ally, Donald Trump. Days before the US 2024 general election, Trump received thousands of crypto donations to support his presidential campaigns.
The pro-crypto president recently shared his manifesto to end President Biden’s war on crypto, which received mixed reactions from the Americans. Trump vowed to make the future of crypto and Bitcoin be realized by America if he ascended office.
He plans to end the development of the central bank digital currency (CBDC) since it deprives individual financial privacy. Trump stated that CBDC allows the government to surveil individual spending habits.
US Prepare for 2024 General Election
On the contrary, the current president, Joe Biden, has been advocating the development of the digital dollar to promote financial inclusion in the US. Even though Biden has expressed less interest in crypto, the US president is expected to attend a round table discussion on Bitcoin in Washington DC next month.
The American crypto investors will attend the meeting hosted by Representative Ro Khanna, lawmakers, and the Biden administration. The conference aims to promote innovation in the Bitcoin and crypto ecosystem.
Crypto is believed to influence election outcomes, according to recent polls. This forced the Biden administration to reverse its stance on crypto assets days before the 2024 election.
On June 24, the White House rehired former crypto advisor Carole House. The new hire will guide the Biden administration in providing regulatory clarity on digital assets.
On LinkedIn, House expressed excitement about returning to office to redefine digital economies. The official explained the need to have a secure and trustworthy digital sector.
In a subsequent interview with the Web3 Working Group, House lamented that the need for regulatory clarity had limited the growth of the American digital economy. The new hire tasked the US Securities and Exchange Commission (SEC) to work on developing comprehensive regulations on digital assets.
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