In an encouraging development for Bitcoin adoption, Florida Republican Congressman Matt Gaetz recently introduced a bill mandating the IRS to accept tax payments in Bitcoin. At present, only Colorado allows the use of cryptocurrency to pay taxes. The other states waiting in line to approve the payment are Utah, New Jersey, and Kentucky.
Gaetz’s move came after attending the second inauguration of El Salvador’s populist president, Nayib Bukele. El Salvador became the first country to adopt Bitcoin as a legal tender in 2021.
“My groundbreaking legislation will modernize our tax system by allowing federal income tax to be paid with Bitcoin. By enabling taxpayers to use BTC 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.
Digital assets have been a contentious subject in the United States where regulators like the SEC have embarked on broader enforcement actions against several industry players. As a result, crypto proponents have slammed the approach accusing it of stifling innovation and forcing US firms to set shop offshore.
Despite the controversy, the US became the first nation in the world to approve both Bitcoin and Ethereum ETFs, which has spurred mainstream interest in digital assets.
Bitcoin ETF Bounce Back: $31M Inflows Break 7-Day Streak
The other day, Bitcoin ETFs recorded a major reversal, posting $31 million in inflows after seven consecutive days of outflows. Here’s the breakdown: Total Net inflows were over 500 BTC, worth nearly $31 million. Fidelity led the tally with +800 BTC, worth $48 million. Bitwise followed with +250 Bitcoin, valued at $15 million.
WE ARE SO BACK!! U.S BTC ETFs saw $31 million in inflows yesterday, June 25th breaking its 7-day streak of outflows. Here’s the Breakdown. Net Inflows +505 BTC ($31m)
Fidelity +800 ($48m)
Bitwise +250 ($15m)
Grayscale -500 (-$31m)
However, Grayscale experienced outflows of -500 BTC, equating to -$31 million. This shift highlights renewed investor confidence in Bitcoin ETFs, especially with significant contributions from major players like Fidelity and Bitwise, despite Grayscale’s substantial outflows. The overall sentiment appears to be turning positive for BTC investments.