As reported by Forbes, the resurgence of Bitcoin this year, in the wake of its 2022 price crash, has thrust the cryptocurrency back into the global spotlight.
Amidst warnings from former U.S. president Donald Trump regarding the potential decline of the U.S. dollar as the world's reserve currency, Republican U.S. representative Matt Gaetz of Florida has put forward a bill with the groundbreaking proposal of allowing federal income taxes to be paid in bitcoin.
In an emphatic statement, Gaetz touted the bill as a bold step towards integrating digital currencies into the financial system, with the aim of positioning the U.S. at the forefront of technological advancement. He emphasized that this move would not only foster innovation and enhance efficiency but also provide greater flexibility for American taxpayers. "This is a bold step toward a future where digital currencies play a vital role in our financial system, ensuring that the U.S. remains at the forefront of technological advancement."
Gaetz's stance not only echoes the sentiments expressed by Donald Trump, who has been vocal about his desire for the U.S. to take a leading role in the development of bitcoin, but also underscores the brewing clash between the Trump camp's support for crypto and the Biden administration's anti-crypto stance. "I will end Joe Biden's war on crypto," Trump said at a recent rally in Wisconsin. "We will ensure that the future of crypto and the future of bitcoin will be made in America."
Trump's recent endorsement of cryptocurrencies, marked by his acceptance of campaign donations in various digital assets, represents a divergent approach from the current administration's position. He has also delved into the world of crypto-based digital trading card non-fungible tokens (NFTs), making millions of dollars in the process.
The trend toward crypto adoption is gaining momentum at the state level as well. Colorado has already started accepting crypto for tax payments, and states such as Utah, New Jersey, and Kentucky are also making strides towards integrating bitcoin into official payment systems.
While U.S. lawmakers have struggled to find consensus on crypto-related legislation in recent years, some progress has been made in 2022. The House recently passed the Republican-led Financial Innovation and Technology for the 21st Century Act, also referred to as Fit21, aiming to delineate regulatory responsibilities for crypto markets between the Securities and Exchange Commission (SEC) and the Commodities and Futures Trading Commission (CFTC). Despite this milestone, the bill is not expected to be enacted into law this year.
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