US Could Create a Tax-Free Zone for Bitcoin Transactions

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.

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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.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.