Democratic presidential candidate Robert F. Kennedy Jr. outlined specific Bitcoin-focused policies he would enact as president at a Heal-the-Divide PAC event on July 18. He proposed backing U.S. dollars with the crypto token and exempting Bitcoin profits from capital gains taxes, which would greatly benefit crypto trading.
Kennedy Jr. said his plan would start very small at the event, potentially backing one percent of issued T-bills with assets such as gold, silver, platinum, or Bitcoin. After analyzing the outcome of this initial step, he would annually increase the allocation.
Kennedy Jr. is not the only presidential candidate who has made crypto-based promises. Florida Governor and Republican presidential candidate Ron DeSantis earlier promised to ban central bank digital currencies (CBDCs) if elected president.
Details about the proposed policy
This policy proposal envisions a financial system reimagined around the absolute scarcity of Bitcoin and its sound monetary principles. If passed, it could reinforce the U.S. dollar’s position as the world reserve currency, which is currently eroding.
“Backing dollars and U.S. debt obligations with hard assets could help restore strength to the dollar, rein in inflation, and usher in a new era of American financial stability, peace, and prosperity,” said Kennedy Jr, adding his administration would also exempt the conversion of bitcoin to the U.S. dollar from capital gains taxes.
Per the current law, when someone sells Bitcoin for a profit, they are liable to pay capital gains taxes. It means that the government can track their Bitcoin transactions and see how much profit they have made. The government could use the data to target people who are critical of the government or involved in political activism.
“Non-taxable events are unreportable, and that means it will be more difficult for governments to weaponize currency against free speech, which, as many of you know, is one of my principal objectives,” said Kennedy Jr.
In his view, some benefits of the proposed plan include stimulating innovation, attracting investment, and protecting citizen privacy. He also suggested that it could encourage businesses to grow and create tech jobs in the U.S. instead of Singapore, Switzerland, Germany, or Portugal.
He also reiterated his commitment to Bitcoin adoption during a speech at the Bitcoin 2023 conference in May, pledging to defend the right to self-custody, run nodes and support industry-neutral energy regulation. Recently, Kennedy Jr. also announced that he would accept Bitcoin donations for his campaign.
Following JFK’s footsteps
Kennedy Jr. said that his commitments to Bitcoin align with the ideals of his uncle, President John F. Kennedy, and his vision for a free and equitable country.
“My uncle, President Kennedy, when he was in office, understood the importance of hard currency and the dangers of having pure fiat currency with no other option,” said Kennedy Jr.
The president hopeful claimed that his uncle understood that fiat currency is linked to war, environmental destruction, and the concentration of wealth. He said these are why he prefers hard money, as “they make it more difficult” to “fund wars.” The government cannot print money to fund a war and then tax the public through a hidden inflation tax. According to the Watson Institute, the estimated U.S. post-9/11 war spending between 2001 and 2022 is $8 trillion.