Texas Congressman plans to submit bill that would classify bitcoin as currency

If U.S. Representative Steve Stockman (R-TX) is successful, bitcoin will soon be classified as a currency rather than as property. The congressman recently announced plans to introduce a new bill entitled the Virtual Currency Tax Reform Act which would overrule the recent IRS decision to subject bitcoin to capital gains taxes.

Although the bill itself has yet to be completed, Stockman gave a strong indication of the tone in his press release.

This is a nascent industry. Along with 3-D printers and nanotubes, cryptocurrency is the future. We need to encourage it, not discourage it. There is risk associated with every budding industry in America.”

Stockman is already well-known in the bitcoin community for becoming one of the first national-level politicians to accept campaign contributions in bitcoin. Even though the Federal Elections Commission (FEC) has confirmed that bitcoin donations are legal, the IRS ruling could have a chilling effect on bitcoin use as political contributions. Congressional reaction to Stockman’s bill may prove an effective gauge for the impact of bitcoin in coming elections.