RFK Proposes Bold Bitcoin Policy To Boost US Economy
Robert F. Kennedy Jr. proposes backing dollars with Bitcoin. His goal? Strengthen the dollar and foster American financial stability.
In an unconventional plan for economic revitalization, Robert F. Kennedy Jr., the current Democratic candidate for the US presidency, is advocating for a Bitcoin-friendly approach.
At a Heal-the-Divide PAC event on July 19, Kennedy proposed several measures, including exempting conversions of Bitcoin to US dollars from capital gains tax and backing the dollar with "tangible finite assets" like gold, silver, platinum, and bitcoin.
Kennedy argues that linking dollars and US debt obligations with such hard assets could be a game-changer for the economy.
"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."
- Robert F. Kennedy Jr., Heal-the-Divide PAC event
The Presidential candidate has been a vocal advocate for bitcoin. He recently reiterated his commitment to Bitcoin self-custody rights and the right to operate blockchain nodes from private residences, and call for unbiased energy regulation. His latest plan would be rolled out gradually, potentially starting with "approximately 1% of newly issued Treasury bills" backed by commodities like gold or even bitcoin.
Commodity Or Currency?
At present, the US Internal Revenue Service (IRS) categorizes bitcoin as an investment property rather than a currency, meaning it is subject to capital gains tax if holders profit on a sale. This situation has caused unrest among crypto firms, who have been appealing for more clear-cut regulations. These calls have intensified amidst recent actions by the US Securities and Exchange Commission (SEC) targeting the crypto industry.
Criticizing the government's clampdown on the crypto industry, Kennedy argued it was counterproductive for the government to "stifle the industry and divert innovation to other places." His plan includes an end to capital gains tax on bitcoin transactions, meaning it could be used as a currency without burdening users with the need to make capital gains tax declarations for every sale. This, he said, would help foster innovation and investment in the US, rather than pushing blockchain startups overseas to more crypto-friendly jurisdictions.
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