U.S. Representative Matt Gaetz (R-FL) introduced legislation to require the U.S. Treasury to accept bitcoin as payment for federal income taxes. The legislation was announced in a June 25 news release.

According to the announcement, Congressman Gaetz attended the second inauguration of El Salvador’s president, Nayib Bukele, and learned how Bitcoin has played a role in the country’s financial stability and job creation. El Salvador adopted Bitcoin as legal tender in 2021.

Gaetz’s bill requires the Secretary of the Treasury to specify when bitcoin will be considered received as payment for federal income taxes; to mandate that bitcoin received be converted immediately to its dollar equivalent as a transaction is concluded; and to identify nontax matters related to payment by such means that are to be resolved by persons ultimately liable for payment and financial intermediaries, without the involvement of the secretary. The bill states that it goes into effect for payments made one year after the date of enactment.

"My groundbreaking legislation will modernize our tax system by allowing federal income tax to be paid with Bitcoin. By enabling taxpayers to use Bitcoin for federal tax payments, we can promote innovation, increase efficiency, and offer more flexibility to American citizens. 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," said Congressman Gaetz.

Gaetz grew up in northwest Florida and is married with one son. He graduated from Florida State University with a bachelor’s degree in interdisciplinary sciences and holds a Juris Doctorate from William & Mary Law School. He is now in his fourth term in the U.S. House of Representatives, focusing on national security, veterans’ affairs, and adherence to constitutional principles.