New Bitcoin Legislation Presented to Congress Following Cryptocurrency Price Decline

Bitcoin has regained attention in 2024 after experiencing a significant price crash earlier, with concerns arising about potential market impacts from former President Donald Trump and current President Joe Biden. The bitcoin price recently dropped below $60,000 from its peak above $70,000, fueling worries of a substantial correction.

In response to these developments, Republican U.S. representative Matt Gaetz from Florida has introduced a notable bill that proposes allowing federal income taxes to be paid using bitcoin. Gaetz hailed this move as groundbreaking, emphasizing the importance of digital currencies in advancing the financial system and positioning the U.S. at the forefront of technological progress.

Gaetz’s initiative aligns with Trump’s recent statements advocating for the U.S. to lead in bitcoin development. Trump has pledged to end what he perceives as Biden’s anti-crypto policies, expressing a commitment to ensuring that the future of crypto and bitcoin is shaped in America. Trump’s endorsement of crypto has diverged sharply from the Biden administration’s stance, with Trump even accepting campaign contributions in various cryptocurrencies like bitcoin, ethereum, solana, dogecoin, and shiba inu.

The bill introduced by Gaetz comes amidst a broader trend of increasing acceptance of cryptocurrencies for tax payments. Colorado initiated this practice in 2022, and states such as Utah, New Jersey, and Kentucky have also taken steps toward embracing bitcoin for tax obligations.

Furthermore, U.S. lawmakers have made progress on crypto-related legislation this year, notably passing the Financial Innovation and Technology for the 21st Century Act in the House. This bill, known as Fit21, delineates regulatory responsibilities for crypto markets between the Securities and Exchange Commission (SEC) and the Commodities and Futures Trading Commission (CFTC), although it is not anticipated to become law in the current year.

Overall, the evolving landscape of cryptocurrencies, particularly bitcoin, is witnessing significant developments in terms of regulatory acceptance and integration into financial systems, signaling a potential shift towards broader adoption and utilization of digital assets in the mainstream economy.