A new proposal in the United States aims to make the country a leader in the digital economy sector by creating a tax-free Digital Economic Zone (DEZ) for Bitcoin.
The initiative, spearheaded by policy group USABTC, aims to create a zone in which Bitcoin transactions would be exempt from capital gains taxes, although redemptions in traditional currencies would be taxed.
According to the USABTC, this DEZ could secure the financial future of the United States by creating a “sustainable and innovative” economic environment while preserving the central role of the dollar. The proposal suggests that direct government purchases of Bitcoin would be impractical and politically difficult, so it instead recommends the creation of a DEZ to attract investors and spur wealth growth within a regulated framework.
The plan includes a system to tie Bitcoin to a second-layer solution for efficient transactions and proposes an exit tax on BTC conversions to generate revenue for both federal and state governments.
This initiative also outlines a phased implementation starting with a Presidential Executive Directive to use the Exchange Stabilization Fund (ESF), followed by legal and legislative action and public outreach.
The Internal Revenue Service (IRS) will help establish the legal framework and approve the tax structure. The USABTC aims to begin implementation in 2025, and the DEZ could be operational by 2026, provided all approvals are secured. This proposal also aims to protect against excessive government powers by legally enshrining the right to self-custody of Bitcoin.
Bitcoin is once again mirroring global liquidity trends—and that could have major implications in the days ahead.
The crypto market is showing signs of cautious optimism. While prices remain elevated, sentiment indicators and trading activity suggest investors are stepping back to reassess risks rather than diving in further.
Citigroup analysts say the key to Bitcoin’s future isn’t mining cycles or halving math—it’s ETF inflows.
Bitcoin may be entering a typical summer correction phase, according to a July 25 report by crypto financial services firm Matrixport.