A lawmaker in Florida has introduced a bill that would make Bitcoin an approved payment method for federal taxes. On Tuesday, Republican Representative Matt Gaetz proposed a bill that would allow American citizens to pay their federal income tax obligations using Bitcoin (BTC). Gaetz said the modernized tax system would encourage innovation, increase efficiency and maintain the United States' leadership in technological advances. 📜

He stated that he was inspired to pursue a new law after personally seeing the impact of Bitcoin in El Salvador. Gaetz's proposed Bitcoin tax bill is new and has not yet been debated in Congress. However, if the bill moves forward, it could mirror part of a Colorado state law that allows taxes to be paid in cryptocurrency. Colorado began its crypto tax payment program in late 2022 and is the only jurisdiction with such policies.

Meanwhile, bipartisan legislators successfully passed the 21st Century Act for Financial Innovation and Technology, or FIT 21. The law aims to regulate crypto oversight by aiming to split regulatory responsibilities between the Commodity Futures Trading Commission and the Securities and Exchange Commission.