Bitcoin is a remedy against excessive government interference, according to Kennedy

Cryptocurrency, especially Bitcoin (BTC), is a crucial tool against excessive government interference and financial domination, according to US presidential candidate Robert F. Kennedy Jr. during an informal conversation at ETHDenver 2024 with Caitlin Long, CEO of Custodian Bank.

Kennedy’s advocacy for crypto was fueled by the Canadian government’s financial targeting of truck drivers during the “Freedom Convoy” protests against COVID-19 restrictions. He compares transactional freedom to freedom of expression and argues that without financial autonomy, civil liberties are at risk.

“It struck me that if a government has the right to close your bank account, then they have the ability to subjugate us — to commit any kind of atrocity,” Kennedy noted. “…transactional freedom was as important to a free society as the guarantees of freedom of speech. Since the First Amendment means nothing if the government has the right to close your bank account and starve you if it doesn’t agree with your speech. And that’s when I started getting interested in cryptocurrencies and alternative currencies.”

Kennedy points out that crypto, especially Bitcoin, is a hedge against inflation. This view stems from his broader criticism of the Federal Reserve and the current banking system, which he argues disproportionately benefits a wealthy elite at the expense of the general population. Kennedy continued:

“The more I learned about cryptocurrency, the more important it became to me: this is the exit ramp for our addiction to the Fed, to money printing, to the monopolistic banking system.”

According to him, despite initial difficulties in investing in crypto due to regulatory hurdles, the introduction of spot Bitcoin ETFs in the US opened the market to a wider audience, improving the currency’s value discovery and overall market growth. He promised that as president he would make the US “the center of cryptocurrency, blockchain and stablecoin innovation.”

Kennedy aims to remove Bitcoin’s current tax treatment, which classifies it as a security, if he is elected president. “I want to end the taxation of Bitcoin, which is now taxed as a security,” Kennedy emphasized.

However, Kennedy raised concerns about creating advantages for large institutions by eliminating capital gains taxes on all Bitcoin transactions. His goal is tax exemptions on small crypto purchases to promote the everyday use of crypto without the burden of taxes.

“…small transactions of all cryptocurrencies should be tax-free. You should be able to buy an apple, a beer or a car with crypto without paying taxes on the value it has built up since you bought it. And so those are some of the things that I’m going to do to free up transactional freedom,” Kennedy added.

In the US, Bitcoin is subject to tax as property when held as a capital asset. Any gains or losses from the sale or exchange of Bitcoin are treated as capital gains or losses for tax purposes. If you hold Bitcoin for more than a year, you may qualify for tax-favored long-term capital gains, which are taxed at up to 20%, according to The Motley Fool.

In addition to dropping taxes on Bitcoin, Kennedy’s plans include making US banks crypto-friendly and ending repression on banks that work with crypto. RFK Jr. is a pro-crypto presidential candidate. He announced at the Bitcoin 2023 conference in Miami that he would accept political campaign donations in Bitcoin. Kennedy also revealed an investment of over $250,000 in Bitcoin.