Already a subscriber? Make sure to log into your account before viewing this content. You can access your account by hitting the “login” button on the top right corner. Still unable to see the content after signing in? Make sure your card on file is up-to-date.

Congressman Matt Gaetz (R-FL) has introduced new legislation that would allow Americans to pay their federal income tax in bitcoin.

Congressman Gaetz, who recently traveled to El Salvador for Nayibi Bukele’s inauguration, said he witnessed “how Bitcoin, the world’s most popular decentralized digital currency, has helped promote financial stability and job creation in Central America after El Salvador became the first country to adopt Bitcoin as a legal tender in 2021. Following the success El Salvador has had with Bitcoin and the recent boom in cryptocurrency.” Congressman Gaetz said that allowing tax payments in Bitcoin will “promote innovation, increase efficiency, and offer more flexibility to American citizens.”

SEC Chair Gary Gensler has voiced strong opposition to the House bill, arguing that it would dilute his agency’s regulatory authority. He said, “The crypto industry’s record of failures, frauds, and bankruptcies is not because we don’t have rules or because the rules are unclear. It’s because many players in the crypto industry don’t play by the rules. We should make the policy choice to protect the investing public over facilitating business models of noncompliant firms.”

This development comes as Colorado, Utah, New Jersey, and Kentucky have enacted similar legislation allowing residents to pay cryptocurrency taxes. In addition, Congress recently passed a framework that would grant oversight of cryptocurrency trading to the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).