Matt Gaetz a US Congressman introduces a bill to allow Bitcoin for federal tax payments

Republican Congressman Matt Gaetz from Florida has introduced a new bill that would allow taxpayers to make federal income tax payments using Bitcoin. The proposed legislation aims to amend the Internal Revenue Code of 1986 and instructs the Secretary of the Treasury to develop a plan for incorporating Bitcoin as a payment option for taxes.

Gaetz stated, “By permitting the use of Bitcoin for federal tax payments, we can encourage innovation, improve efficiency, and provide more flexibility to American citizens. This is a significant step towards a future where digital currencies play a crucial role in our financial system, ensuring that the U.S. remains a leader in technological advancements.”

The bill outlines specific rules for accepting Bitcoin, including conditions for payment receipt and the immediate conversion of Bitcoin into its dollar value. Additionally, it addresses non-tax issues, contracts, fees, and liabilities associated with Bitcoin payments.

This move comes at a time when there is growing support for Bitcoin among U.S. politicians. Presidential candidates Donald Trump and Robert F. Kennedy Jr. are already accepting Bitcoin contributions, and there are reports that the Biden campaign may soon follow suit by accepting cryptocurrency donations.

In response to Trump’s favorable stance on Bitcoin, Biden Administration officials are expected to attend a Bitcoin roundtable in Washington D.C., organized by Congressman Ro Khanna in the near future.

Meanwhile, Coinbase CEO Brian Armstrong has been actively engaging with both Democratic and Republican senators in Washington D.C. to advocate for clear regulatory guidelines for the cryptocurrency market.