US Congressman Introduces Bill to Allow Income Tax Payments in Bitcoin
US Congressman Matt Gaetz has introduced a bill that would allow federal income tax payment to be paid in Bitcoin. The Florida representative introduced legislation that would amend the Internal Revenue Code of 1986 to permit taxpayers to use the leading cryptocurrency for tax payments.
However, the proposed amendment would require the Treasury to “develop and implement a method to allow for the payment with Bitcoin of any tax imposed on an individual,” under the specified title.
Furthermore, this bill would be a significant step towards increasing the adoption of cryptocurrency in the United States.
Federal Income Tax Payments in Bitcoin
In 2024, Bitcoin made significant strides in gaining acceptance in the US. It became the first crypto-based ETF in the country, leading to a surge in institutional investor interest since its approval in January.
Now, a US Congressman is proposing a bill to allow income tax payments in Bitcoin. Matt Gaetz of Florida has introduced the legislation, which would bring about a major change to the current Treasury code. This change would require the Treasury to focus more on implementing digital assets.
Additionally, by allowing taxpayers to use Bitcoin for federal tax payments, we can encourage innovation, improve efficiency, and provide more flexibility to American citizens,” Gaetz told the Daily Wire. He added, “This is a bold step towards a future where digital currencies play a vital role in our financial system.”
El Salvador adopted BTC as legal tender in 2021, becoming the first country to do so. The country’s continued embrace of Bitcoin likely inspired Gaetz’s action in the US.
Crypto Whales Panic as BTC Hits $64,000: Sells off Bitcoin Assets
The recent drop in market prices has led to chaos in the crypto market. Over the past two weeks, long-term BTC miners and holders have been selling off a significant portion of their Bitcoin assets.
These large investors, also known as crypto whales, are not showing any signs of buying back the cryptocurrency. As a result, there is minimal buying activity and demand in the market.
CryptoQuant reported that more than $1.2 billion worth of BTC has been sold off in the last two weeks, and traders are hesitant to increase their Bitcoin holdings. Data from CryptoQuant’s UTXO age band indicates a continuous decline in holdings since BTC reached over $70,000 in late May.
