Colorado Governor Says He Expects State to Accept Crypto Tax Payments by Summer

Jared Polis, the governor of Colorado, announced that the state government plans to allow residents to pay taxes in cryptocurrencies as e...


Jared Polis, the governor of Colorado, announced that the state government plans to allow residents to pay taxes in cryptocurrencies as early as summer 2022.

In an interview with CNBC on Tuesday, Polis noted Colorado crypto holders could have the ability to send tax payments in digital currency, which the state would then convert back to fiat. The governor said an anonymous middleman would likely handle the crypto-to-fiat exchange.

“We expect by this summer – very soon – to accept crypto for all of our state tax purposes,” Polis said. “Then we plan to roll this out across state government for things like, could be as simple as driver’s license or hunting license in a few months after that.”

Jared Polis, Governor of Colorado. Source: CNBC

The governor added that he was “not at all” concerned about the potential volatility of cryptocurrencies like Bitcoin (BTC) since the state had no intention of HODL the coins and would instantly convert the funds. Polis cited decreasing transaction costs in the potential state decision to embrace crypto payments, as well as the prospect of promoting a new asset class.

Shortly after taking office in 2019, Polis sign the Colorado Digital Token Act into law. The legislation sought to exempt tokens with a “primarily consumer purpose” from certain securities regulations. The governor added that State Senator Chris Hansen was also working on a bill that would “allow state-created digital tokens to be used for state reserve purposes.” Hansen introduced legislation in January that proposed to amend the state’s commercial code “to protect ownership and control of digital information assets generated by agricultural producers in a manner similar to changes enacted by Wyoming.”

Related: While Washington dithers, Wyoming and other US states mine crypto gold

Some U.S. lawmakers have proposed addressing any potential regulatory uncertainty around digital assets at the state level, apparently rather than waiting for a framework from Congress. Earlier this month, a member of the Tennessee House of Representatives proposed to allow the state to invest in crypto and non-fungible tokens. The state of Wyoming has also introduced several pieces of legislation aimed at attracting the activities of crypto miners.