U.S. Lawmakers Push for Bitcoin in Daily Transactions

Senator Cynthia Lummis and former Congressman Mike Rogers are advocating for the simplification of Bitcoin usage in everyday transactions, such as buying coffee or groceries. Currently, even minor Bitcoin transactions may require complex tax reporting, which discourages users from integrating Bitcoin into their daily financial activities.

Recently, they played a key role in passing the GENIUS Act, which aims to establish clear regulations for stablecoins. This act seeks to protect consumers without stifling innovation, ensuring that issuers of digital coins adhere to robust rules and maintain adequate financial reserves.

While the GENIUS Act is a significant milestone, Lummis and Rogers emphasize that it is just the start. They believe Congress must also define different types of digital assets clearly. Some digital assets should be treated like commodities, such as gold, while others should be treated like securities, such as stocks. This clarity would help businesses understand the applicable regulations and provide regulators with more guidance.

Several states, including Wyoming and Michigan, are leading the way in crypto-friendly legislation. Michigan recently enacted a “Cryptocurrency Bill of Rights” and proposed establishing a state-run crypto reserve. Wyoming has passed over 30 crypto-specific laws, demonstrating how states can move faster than the federal government in this area.

Lawmakers are also advocating for the elimination of “double taxation” on Bitcoin, such as taxes on both mining and selling. They are pushing to reform corporate tax rules that currently disadvantage Bitcoin holders.

U.S. lawmakers are actively promoting the integration of Bitcoin into daily life, aiming to make the cryptocurrency a practical option for everyday transactions. This initiative is part of a broader effort to modernize the financial landscape and encourage the use of digital currencies. The push comes as the Federal Reserve has relaxed restrictions on banks working with crypto firms, removing the previous requirement for banks to assess the reputational risk of such partnerships. This change is expected to foster greater collaboration between traditional financial institutions and crypto companies, potentially leading to more widespread adoption of Bitcoin.

The move by lawmakers is seen as a significant step towards normalizing the use of Bitcoin in everyday transactions. By advocating for its use in daily life, lawmakers hope to make Bitcoin as accessible as traditional payment methods, such as credit cards and cash. This could include using Bitcoin to purchase goods and services, from coffee to groceries, and even for larger transactions like real estate purchases. The goal is to create a seamless experience for consumers, allowing them to use Bitcoin as easily as they would use fiat currency.

The push for Bitcoin's integration into daily life is also driven by the potential benefits it offers, such as faster transaction times, lower fees, and increased security. Bitcoin transactions are processed on a decentralized network, which means they are not subject to the same delays and fees associated with traditional banking systems. This could make Bitcoin an attractive option for both consumers and businesses, particularly in regions where access to traditional banking services is limited.

However, the integration of Bitcoin into daily life is not without its challenges. One of the main concerns is the volatility of the cryptocurrency market, which can make it difficult for consumers and businesses to rely on Bitcoin for everyday transactions. Additionally, there are regulatory hurdles that need to be addressed, such as the need for clear guidelines on crypto taxation and custody rules. Lawmakers are working to address these issues, with the aim of creating a regulatory framework that supports the use of Bitcoin while also protecting consumers and businesses.

The push for Bitcoin's integration into daily life is part of a broader trend towards the adoption of digital currencies. As more people and businesses become comfortable with the use of cryptocurrencies, it is likely that we will see an increase in their use for everyday transactions. This could lead to a more decentralized financial system, where individuals have greater control over their financial transactions and are less reliant on traditional banking institutions. However, it is important to note that the adoption of Bitcoin and other cryptocurrencies will require ongoing efforts to address the challenges and concerns associated with their use.