Congressman Matt Gaetz (R-FL) has proposed legislation to permit federal income tax payments using Bitcoin, as initially reported by the Daily Wire. This bill seeks to amend the Internal Revenue Code of 1986, directing the Treasury Secretary to devise a framework for accepting Bitcoin.
Gaetz highlighted that his initiative aims to modernize tax payments by enabling Bitcoin transactions. Speaking to The Daily Wire, he stated, “By allowing taxpayers to use Bitcoin for federal tax payments, we can foster innovation, enhance efficiency, and provide greater flexibility to American citizens.” This move, he believes, positions the U.S. at the forefront of financial technology advancement.
The proposed legislation mandates the Treasury Secretary to develop guidelines for Bitcoin acceptance, specifying payment receipt criteria and requiring immediate conversion of Bitcoin to its dollar equivalent. It also addresses ancillary issues like non-tax payments, contracts, fees, and liability management.
This development follows increased Bitcoin advocacy among U.S. politicians, with presidential candidates and officials exploring cryptocurrency acceptance. Congressman Ro Khanna plans a Bitcoin roundtable in Washington D.C., responding to growing political interest sparked by Donald Trump’s endorsement of Bitcoin.
Coinbase CEO Brian Armstrong’s recent meetings with bipartisan senators in D.C. focused on establishing clear regulatory frameworks for the crypto industry. Congressman Thomas Massie’s advocacy for ending the Federal Reserve further underscores Bitcoin’s rising influence in U.S. policy discussions.