Chicago Bullish State? – Following the recent Executive Order of President Bidenthe Illinois rep hopes for more guidance clear at the federal level. Indeed, Margaret Croke is sponsoring another bill aimed at clarifying the regulations. If he might accept bitcoin for taxesIllinois will not follow other states that seek to establish it as legal tender.
Bitcoin to pay taxes in Illinois
The US Senate received a new law Project for the Illinois Department of Revenue (IDR). The latter would allow the IDR to accept crypto payments same as credit card transactions. The internal bill 5287 is sponsored by Illinois State Representative Margaret Croke.
The purpose of this project is to allow the IDR to create rules regarding the acceptance of cryptocurrencies as payment method. Because of this, the ministry has expressed interest in being able to process payments in digital assets like it accepts credit cards.
« When the State of Illinois accepts payment by credit card for revenue, tax, or other payment collection purposes, we have a third-party processor. (…) Similarly, we would have a situation where someone, if they chose to pay via cryptocurrency, would go through a crypto processor and then the state of Illinois would receive US dollars. »
Margaret Croke, Democrat representing Illinois’ 12th District
The IDR will have the final say on the types of payments it allows to be made in cryptocurrency. Indeed, the law might potentially apply to companies seeking to pay taxes on digital assets. The bill passed and then moved to the Illinois Senate in late February. According to Croke, there should be no « no problem » to move the project forward this month.
For the representative from the 12th District, the Illinois State House tends to be more progressive than the Senate when it comes to cryptocurrency. Indeed, this is not « not necessarily two words you hear together in the political sphere: progressives and cryptocurrency ». Finally, Margaret Croke recognizes that « cryptocurrency is still a very new idea for many people. »
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Bitcoin’s Legal Tender Isn’t Coming Soon
The measure appears similar to efforts in Arizona and California to establish Bitcoin as legal tender. However, Margaret Croke made it clear that Illinois only wanted to operate under the current rules. According to the US Constitution, defining a “legal currency” is within the power of Congress, she acknowledged.
“What I don’t want to happen is that as a state we move forward so quickly that we end up having to back down or be usurped by the federal government. (…) I don’t want to get to a point where somebody’s been running a business for a year in Illinois, and all of a sudden the feds come in and say ‘you have to change everything you have put in place’ “
Margaret Croke, Democrat representing Illinois’ 12th District
Regardless of the legislature, action by the federal government is slow, Croke said. The recent executive order of the Biden administration shows that the regulations digital assets is being considered at the federal level. However, clear guidelines are needed.
« I always joke when we don’t know what to do in the Legislative Assembly, we create a task force or a report. (…) That being said, I’m glad there’s that level of motivation… To really dive into the subject and give clear direction on what the Biden administration wants for cryptocurrency. »
Margaret Croke, Democrat representing Illinois’ 12th District
Margaret Croke is not at her first attempt
The representative from Illinois had previously supported another cryptocurrency-focused bill. The latter should, however, be subject to a redesign following the new guidelines. This is a fairly rare case where federal policy moves faster than state legislation. In fact, bill number 3968 should enable companies FinTech of Illinois to hold cryptocurrencies.
« The bill applied to existing banking institutions licensed by the state of Illinois. Now they no longer need to be included in this legislation because they received the guidance they needed at the federal level. (…) However, this only applies to new special purpose companies. »
Margaret Croke, Democrat representing Illinois’ 12th District
With the recent Executive Order of Joe Bidenthe regulation of Bitcoin and cryptocurrencies should gradually advance in each state of the USA. If the sulphurous artist from Illinois Kanye West believes that “Bitcoiners will liberate humanity” one wonders what he might think of Margaret Croke and the regulation in his state.
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