US Senators Propose Restrictions on Cryptocurrency Use in Tax Payments

US lawmakers have introduced amendments aimed at limiting the use of cryptocurrencies in tax payments and restricting their adoption as legal tender.

The proposed changes, submitted by Senator Jack Reed, seek to explicitly prohibit the use of cryptocurrencies for tax purposes. This move is part of a broader bill focused on regulating stablecoins, digital assets pegged to traditional currencies like the US dollar.

Senator Elizabeth Warren has also submitted over 40 amendments related to the bill, including one that would prevent the Federal Reserve from granting master accounts to cryptocurrency companies. Another amendment, jointly submitted by Senators Reed and Smith, proposes restrictions on banks' stablecoin yield offerings.