US Congressman Matt Gaetz introduced a bill that would allow federal income taxes to be paid using the leading cryptocurrency.
If passed, the legislation would amend the Tax Code of 1986 and require the Treasury to implement a program for accepting bitcoin.
According to the statement, the politician began drafting the legislation after visiting El Salvador for the second inauguration of President Nayib Bukele. Gaetz noted that he witnessed how digital gold helped enhance financial stability and create jobs in the country after the asset was adopted as legal tender in 2021.
“By allowing taxpayers to use bitcoin for federal tax payments, we can promote innovation, increase efficiency, and offer greater flexibility to American citizens,” the Republican said in an interview with The Daily Wire.
At the state level, in 2022, Colorado authorities implemented the option to make tax payments in the leading cryptocurrency, as well as in Ethereum, Bitcoin Cash, and Litecoin. The initiative was led by Governor Jared Polis.
Ohio took a similar step back in 2018, but the state closed the web service for paying taxes in bitcoin 11 months later due to low demand.
In May 2024, the House of Representatives passed a bill regulating the crypto industry as a whole, known as FIT21. Experts believe the document lacks sufficient support in the Senate, and President Joe Biden’s administration has already opposed it.
With the November elections approaching, more prominent industry players believe that the current government policy regarding digital assets could cost the incumbent president victory.