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U.S. Democratic presidential candidate Robert F. Kennedy Jr. has revealed an ambitious proposal to grant bitcoin (BTC) exemption from capital gains tax during its conversion into U.S. dollars. Additionally, he advocates for securing the value of the U.S. dollar by backing it with "real finite assets," which include precious metals like gold, silver, platinum, and even bitcoin.
"Backing dollars and U.S. debt obligations with hard assets could help restore strength back to the dollar, rein in inflation and usher in a new era of American financial stability, peace and prosperity," said Kennedy. He would start the process, he said, "very, very small, perhaps 1% of issued T-bills" would be backed by hard currencies like gold, silver platinum or bitcoin.
Addressing a Heal-the-Divide PAC event on Tuesday evening, he reaffirmed his earlier pledges from a conference in May. These commitments include advocating for the right to self-custody bitcoin, promoting the ability to run blockchain nodes from home, and ensuring energy regulation that remains unbiased towards any specific industry.
The initial account of the story originated from TheStreet.
"The benefits include facilitating innovation and spurring investment, ensuring citizen privacy, incentivizing ventures to grow their business and tech jobs in the United States rather than in Singapore, Switzerland, Germany and Portugal,” said Kennedy.
The Internal Revenue Service categorizes bitcoin as a form of property and investment, rather than considering it as a traditional currency. As a result, bitcoin is subject to taxation based on capital gains. Concurrently, the Securities and Exchange Commission has been intensifying its scrutiny of the cryptocurrency industry. For several months, crypto companies have been advocating for more precise and transparent regulations. They are closely observing the outcome of the SEC's lawsuit against Ripple, hoping that a favorable ruling could potentially signal a shift in the regulatory approach towards cryptocurrencies.
“It is a mistake for the U.S. government to hobble the industry and drive innovation elsewhere,” Kennedy wrote in a Twitter post in May. “Biden’s proposed 30% tax on cryptocurrency mining is a bad idea,” he wrote referring to incumbent President Joe Biden, also a Democrat.
Next year, on November 4th, Americans will head to the polls to cast their votes for the next president.
