US Policy Group Proposes Bitcoin Tax-free Digital Economic Zone

A newly formed policy group in the U.S. has proposed a groundbreaking policy to create a Bitcoin tax-free digital economic zone (DEZ).

The USABTC group, composed of financial policy experts and blockchain advocates, is championing this initiative to transform the nation’s approach to digital asset regulation and adoption.

Newly Formed USABTC Policy Group Leads Proposal to Build the Bitcoin DEZ

According to the USABTC group’s vision, the DEZ would serve as a haven for investors and businesses, allowing them to trade Bitcoin without the burden of capital gains taxes.

This innovative strategy aims to position the U.S. as a leader in the rapidly growing cryptocurrency sector, leveraging the “opportunity” that Bitcoin presents to “secure the financial future of America and its citizens,” as stated on the USABTC website.

The USABTC group’s proposal outlines a multi-phased approach to establishing the tax-free Bitcoin DEZ.

Rather than a sudden implementation, the plan calls for a gradual rollout, starting with the U.S. President issuing an executive directive to authorize using the Exchange Stabilization Fund (ESF) for Bitcoin trading and investment.

Subsequent phases would involve legal efforts to classify Bitcoin under the Gold Reserve Act of 1934, paving the way for the creation of the DEZ through legislative action.

This would be accompanied by collaborations with the Internal Revenue Service (IRS) to develop a framework for special tax treatment and tax-free capital gains within the designated economic zone.

Integral to the proposal is the introduction of a proprietary token, dubbed USABTC, which would function as a pegged Bitcoin system.

Powered by a layer 2 blockchain solution, such as Stacks, the USABTC token would facilitate seamless, tax-free transactions within the regulated environment of the DEZ.

Stacks ($STX) is the leading Bitcoin Layer 2. Market News and Data brought to you by Benzinga APIs

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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