Florida lawmaker pitches ‘Bitcoin for Taxes’ bill

crypto news What you need to know about the IRSs crypto question on tax returns option02

A Florida lawmaker has introduced a bill that would greenlight Bitcoin as an approved payment method for federal taxes.

On Tuesday, Republican Representative Matt Gaetz proposed a bill allowing American citizens to settle federal income tax obligations using Bitcoin (BTC). Gaetz said the modernized tax system would promote innovation, increase efficiency, and maintain the U.S.’s leadership in technological advancement. 

Per an official statement from Gaetz’s staff, the policymaker was inspired to pursue new legislation after personally witnessing Bitcoin’s impact in El Salvador. “This is a bold step toward a future where digital currencies play a vital role in our financial system,” said Gaetz.

Under pro-crypto President Nayib Bukele, El Salvador became the first country in the world to legalize BTC. Despite scrutiny from the IMF and even the U.S., the nation has moved forward with its BTC strategy and made billions in unrealized profit on its investment. 

Bitcoin taxes and crypto bills

Gaetz’s Bitcoin-for-taxes bill is new and has yet to be discussed in Congress. Still, if the bill advances, it could mirror part of Colorado state law, which authorizes paying taxes in cryptocurrency. Colorado started its crypto tax payment program in late 2022 and is the only jurisdiction across state lines with such policies. 

Meanwhile, bipartisan legislators successfully pushed through the Financial Innovation and Technology for the 21st Century Act or FIT 21. The bill seeks to regularize crypto oversight by splitting regulatory responsibilities between the Commodity Futures Trading Commission and the Securities and Exchange Commission. 

As crypto news previously reported, senators Maxine Waters and Patrick McHenry are also working on stablecoin bills allowing banks and other local financial houses to issue U.S. dollar-pegged tokens.

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