Dear Members of Congress
This page1 on our website spells out what the Federal Government can do to help the citizens of the United States to help themselves address many of the economic, environmental and social issues facing society, especially in the time of the Covid pandemic. In particular it
explains how the government can do so by actually getting out of the way of citizen led action, by letting those citizens issue their own money without it triggering taxation.
That change in taxation can be achieved either through legislation by Congress, the subject of this page, or via a Presidential Executive Order found here.2
As a result, we are calling on Congress to attach a small piece of legislation as a rider to just about any bill, that carries out that objective. Here is the text of that proposed legislation, which can also be downloaded via this pdf file.3
Community Virtual Currencies Issued by Non-profits under
§ 501(c)(3) and § 501(c)(4) of U.S. Code Title 26
1. U.S. Code Title 26, Subtitle A, Chapter 1, Subchapter F, Part 1, Section 501 shall be modified to include a new subsection
(s) as follows:
§ 501(s) Transactions in Community Virtual Currencies Exempt from Taxation
All financial transactions made with a community virtual currency issued for purposes of localized economic development by entities formed under § 501(c)(3) and § 501(c)(4), shall be exempt from federal taxation. Any purchase of said currency by a business using U.S. dollars for the purchase, may be treated as an expense to that business and be deductible from their gross income, and any sale of goods in exchange for said currencies may be considered a sale at the cost of those goods, and any sale of real property in exchange for said currencies may be considered a sale equal to the seller’s basis in that property. The Department of the Treasury may establish whatever other rules it determines are required in order to implement this mandate.
2. Any non-profit organization formed under § 501(c)(3) and § 501(c)(4), that issues a community virtual currency, shall be
exempt from having to register with FinCEN as a money services business.
3. All federal agencies that have oversight of state and federally chartered banks and credit unions shall treat any community
virtual currencies issued by non-profit organizations under U.S. Code Title 26, § 501(s), and held by a state or federally chartered bank or credit union, as equal to U.S. dollars for purposes of determining such things as, but not limited to: reserve requirements, insurance payments, balance sheet evaluations, etc. The value of said currencies shall be equivalent to/on par
with the U.S. dollar established by the issuing non-profit organization.
In the case of banks, the Federal Deposit Insurance Corporation shall accept such community virtual currencies for partial or full payment of required insurance payments due from that bank as though said payment were in U.S. dollars. In the case of credit unions, the National Credit Union Share Insurance Fund shall accept such regional virtual currencies for partial or full payment of required insurance payments due from that credit union as though said payment were in U.S. dollars.
4. Should any state or federally chartered bank or credit union wish to exchange any community virtual currency held by said bank or credit union and issued by a non-profit organization under U.S. Code Title 26, § 501(s) for U.S. dollars from the Federal Reserve, the Federal Reserve shall purchase said currency from the requesting bank or credit union. The value of said currencies shall be the dollar equivalent established by the issuing non-profit organization.