Presidential Candidate and Bitcoin Supporter Robert F. Kennedy Has Chosen to Run Independently

Robert F. Kennedy and the 2024 U.S. Presidential Election Race

The crypto community is rallying behind Robert F. Kennedy’s presidential campaign. This could potentially change the hostile environment towards Bitcoin in the United States.

Those who endorse Bitcoin under the leadership of U.S. Presidential candidate Robert F. Kennedy Jr. witnessed a significant moment when he officially severed ties with the Democratic Party to launch his campaign as an independent candidate. Kennedy, coming from a deep-rooted background within the Democratic National Convention (DNC), made this historic announcement at an event in Philadelphia.

Kennedy addressed his supporters, stating, “Today, I stand before you to declare our independence from the systemic corruption that robs us of our livelihoods, faith in the future, and mutual respect for each other. But to do that, I must first declare my own independence – independence from the Democratic Party and from all other political parties. This decision was not made lightly, and it pains me to depart from a tradition that includes my uncles, my father, my grandfather, and even my great-grandfather.”

As a Bitcoin-supporting presidential candidate, RFK garnered attention from leaders within the cryptocurrency industry. Transitioning to an independent role aligned well with the ethos of freedom inherent in Bitcoin, solidifying his position as a true advocate for digital currency.

Over time, RFK has passionately asserted that Bitcoin is an asset that can safeguard civil liberties. While considered one of his more progressive stances, he has proposed bold reforms should he assume the presidency.

However, some analysts believe that the likelihood of Robert F. Kennedy running for and winning the presidential election is low. With formidable opponents such as President Joe Biden and former President Donald Trump in the race, the absence of a major party could make RFK’s bid for the presidency challenging.

The removal of Mayor Francis Suarez from the race also raises the question of whether having a Bitcoin-supporting president and a House Speaker is still feasible, a crucial concern many Americans are eagerly awaiting an answer to.

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The hostile crypto environment in the United States.

If President Robert F. Kennedy were to win, it could potentially lead to a less hostile environment towards crypto in the United States.

According to the United States Internal Revenue Service (IRS), cryptocurrencies are treated as property and are subject to taxation. Using cryptocurrencies for transactions is considered a sale of that property. Additionally, if individuals receive payment in Bitcoin, the value of that payment is considered taxable income. Most cryptocurrency transactions are potentially taxable and require reporting.

Despite being virtual, cryptocurrencies have significant real-world tax implications. Taxpayers may be liable for both interest and penalties, and in some cases, even criminal prosecution.

How does the IRS enforce cryptocurrency taxes?

Mark Luscombe, a federal tax analyst at Wolters Kluwer Tax & Accounting, explains that any business transaction exceeding $600, whether it’s paying a non-employee or providing wages to an employee, must be reported to the IRS.

Furthermore, on every individual income tax return, all federal taxpayers are required to honestly answer the question: “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”

In collaboration with the U.S. Department of Justice, the IRS is taking steps to ensure compliance with cryptocurrency tax regulations. They have initiated a “crypto tax compliance” campaign to reach and extensively audit taxpayers.

Additionally, the IRS has sent notices to 10,000 taxpayers reminding them of their tax obligations related to cryptocurrencies and encouraging them to review and amend previous filings if they owe taxes, interest, or penalties.

Do U.S. states tax cryptocurrency transactions?

Cryptocurrency transactions in the U.S. can be subject to taxation. Most states do not have specific laws regarding cryptocurrencies, meaning they generally follow federal income tax regulations.

Any income earned from cryptocurrency investments or payments for services rendered is typically included in an individual’s total income. Most states use the Adjusted Gross Income (AGI), as defined by federal regulations, as the basis for state income tax calculations.

Cryptocurrency transactions continue to be taxed in 2021

In 2021, cryptocurrency businesses must report all their profit and loss transactions. The tax applied to cryptocurrency depends on the difference between the initial investment and the proceeds from cryptocurrency for an individual.

If an investment in cryptocurrency appreciates in value when it’s sold, the profit is taxed as ordinary income. If the investment is held for more than a year, it may qualify for the lower capital gains tax rate.

Additionally, if there are losses when selling, these capital losses can be offset against gains in other investments.

The distinction when using cryptocurrency for payments

Using Bitcoin for payments is also considered a sale of the cryptocurrency. Buying and selling Bitcoin can result in gains or losses. The IRS notes that the value of Bitcoin is not tied to any other currency and is entirely dependent on market supply and demand.

Bitcoin is currently one of the purest forms of free-market assets, traded globally with a high volume and without control.

Unlike credit cards, Bitcoin transaction fees are entirely voluntary and paid by the sender, not the recipient. Higher fees can prioritize the transaction for faster processing. Bitcoin transaction fees are often much lower than credit card payments or wire transfers.

Sending money via Bitcoin incurs a fee unrelated to the amount sent, making Bitcoin appealing to those looking to send large sums of money.

Conclusion

Supporters of Bitcoin in particular, and cryptocurrency in general, in the United States are eagerly anticipating Robert F. Kennedy’s presidential campaign in 2024. This could potentially bring about a significant transformation in the crypto industry, ushering in a new chapter for investors who believe in this market.