The United States proposes the establishment of a Bitcoin tax-free digital economic zone (DEZ)
To ensure the United States’ leadership in the global digital economy, the newly established U.S. policy group USABTC has put forward an innovative proposal to establish a Bitcoin Tax-Free Digital Economic Zone (DEZ). The zone would allow Bitcoin to be traded and accumulated without paying capital gains tax, but would impose a tax when converted back to traditional currency.
According to USABTC, this move will help build a "resilient and innovative" economic environment, thereby protecting the financial future of the United States while continuing to ensure the core position of the U.S. dollar in the global financial system. The emergence of Bitcoin has prompted global legislators to rethink traditional financial strategies. USABTC believes that direct government purchases of Bitcoin are impractical and politically challenging, so the establishment of a DEZ is a more feasible solution.
Attract investment and promote economic growth
The proposal states that providing tax-free capital gains within the DEZ will attract investors and promote wealth growth in a regulated environment. Additionally, an exit tax on the exchange of Bitcoin back into traditional currencies would generate a new revenue stream for the government, which would be beneficial to both federal and state finances. USABTC also envisions a system anchored to Bitcoin on Layer 2 to ensure efficient and secure transactions.
The proposal also details a phased implementation plan for the DEZ, beginning with an executive order signed by the president authorizing the use of the U.S. Treasury’s Exchange Stabilization Fund (ESF) established by the Gold Reserve Act of 1934 to advance the project. This will be followed by legal opinion writing, legislative efforts, and public outreach to ensure broad understanding and support. Additionally, the Internal Revenue Service (IRS) will be involved to assist in establishing a sound legal framework and approving the proposed tax structure.
Potential drivers of U.S. digital economic leadership
USABTC emphasized that if this initiative is successful, it will help promote the United States to become a leader in the digital economy. The plan also includes measures to prevent excessive government intervention and legislates users’ right to self-custody, responding to some long-standing concerns of the cryptocurrency community.
According to current plans, USABTC’s proposal will begin implementation in 2025, with the DEZ expected to be officially operational in 2026. If the proposal receives legislative and regulatory approval, it would be a major step toward deeply integrating Bitcoin into the U.S. economy. This plan provides a balanced approach, providing tax benefits to investors while ensuring revenue for the government. If successful, DEZ is expected to position the United States as a leader in the global digital economy.
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.
