RFK Jr. Pledges to Support Dollar with Bitcoin, Proposes Tax Exemption for BTC

Democratic presidential candidate Robert F. Kennedy Jr. has revealed a comprehensive plan aimed at giving bitcoin (BTC) a special status, exempting it from capital gains tax upon conversion to U.S. dollars. In addition, he intends to introduce a unique backing system for the U.S. dollar, which would involve supporting it with valuable finite assets like gold, silver, platinum, and bitcoin.

Kennedy envisions this measure as a means to strengthen the dollar, curbing inflation, and bringing about an era of financial stability, peace, and prosperity for the American economy. Initially, he proposes a cautious approach, with only a small percentage, perhaps 1% of issued T-bills, being backed by these hard currencies.

During a recent Heal-the-Divide PAC event, Kennedy reiterated his commitment to defending the right to self-custody bitcoin, promoting the establishment of home-based blockchain nodes, and ensuring energy regulations that are neutral to the industry. These initiatives, he believes, will stimulate innovation, attract investments, safeguard citizen privacy, and create opportunities for tech jobs within the United States.

The current tax treatment of bitcoin by the Internal Revenue Service, considering it as property and an investment rather than currency, subjects it to capital gains tax. Furthermore, the Securities and Exchange Commission has taken a strict approach towards the crypto industry. In response, various crypto companies have been advocating for clearer regulations, and some are keeping an eye on the SEC's lawsuit with Ripple, hoping it might prompt a change in regulatory strategy.

Kennedy has been vocal about his disagreement with the U.S. government's approach towards the crypto industry, particularly its potential to hinder progress and drive innovation away. He voiced his opposition to President Joe Biden's proposed 30% tax on cryptocurrency mining, highlighting the importance of fostering an environment conducive to growth and innovation rather than pushing it overseas.

Kennedy's forward-thinking proposals and emphasis on nurturing the crypto sector have garnered significant attention, sparking debates on the future of cryptocurrency in the United States. With the potential to attract investments and drive technological advancements domestically, his vision represents an alternative path to embrace the benefits of this emerging sector while ensuring regulatory clarity and financial stability.