Proposal: Creation of a Bitcoin Economic Zone (BEZ)

Proposal: Creation of a Bitcoin Economic Zone

Proposal: Creation of a Bitcoin Economic Zone (BEZ)

A secure, tax-free zone for Bitcoin holders that strategically grows a U.S. Bitcoin Reserve.

A secure, tax-free zone for Bitcoin holders that strategically grows a U.S. Bitcoin Reserve.

What is USABTC?

What is USABTC?

USABTC is a 1:1 Bitcoin-pegged Layer-2 token, which automatically enters you into the Bitcoin Economic Zone (BEZ).

Once approved by Congress, the BEZ is tax-free for transactions, except for a 10% exit tax, which funds the U.S. Strategic Bitcoin Reserve.

USABTC is a 1:1 Bitcoin-pegged Layer-2 token, which automatically enters you into the Bitcoin Economic Zone (BEZ).

Once approved by Congress, the BEZ is tax-free for transactions, except for a 10% exit tax, which funds the U.S. Strategic Bitcoin Reserve.

The Bitcoin Economic Zone

The Bitcoin Economic Zone

Anyone can enter or exit the BEZ by acquiring or burning USABTC.

Here's a simple visual showing how it works:

A Haven for Bitcoiners

A Haven for Bitcoiners

Upon Congressional approval, more Bitcoiners than ever would have a free and secure space to transact and innovate.

  • Bitcoin Security: Secured by 100% of Bitcoin hash power. No counterparty risk.

  • Transact Tax-Free: Trade, hold, and transact Bitcoin without paying capital gains taxes.

  • Innovation-Friendly: Fully unlocking Bitcoin DeFi with programmable, high-speed, tax-free Bitcoin.

A Vision for America

A Vision for America

The U.S. faces a critical economic moment with rising national debt, global financial shifts, and challenges to the dollar’s dominance. Bitcoin is both a challenge and an opportunity.

The U.S. faces a critical economic moment with rising national debt, global financial shifts, and challenges to the dollar’s dominance. Bitcoin is both a challenge and an opportunity.

  • Passive Bitcoin Growth: The BEZ enables the U.S. to build a Strategic Bitcoin Reserve without taxpayer costs or market disruption.

  • Economic Strength: A tax-free trading zone attracts global capital and innovation, positioning America as a leader in digital finance.

  • No Burden to Taxpayers: Instead of spending billions on Bitcoin purchases, the U.S. can grow reserves through a fair exit tax.

Get USABTC Updates

Periodic emails on USABTC's progress towards becoming law.

Get USABTC Updates

Periodic emails on USABTC's progress towards becoming law.

Get USABTC Updates

Periodic emails on USABTC's progress.

Support USABTC

There are two ways to help make the tax-free Bitcoin Economic Zone a reality.

1. Call Your Local Senator

1. Call Your Local Senator

Your voice matters—contact your local senator and urge them to support USABTC for the creation of a U.S. Strategic Bitcoin Reserve.

Not sure who to call? Here is a list of crypto-friendly senators.

Not sure what to say? Here are some talking points we suggest:

Your voice matters—contact your local senator and urge them to
support USABTC for the creation of a U.S. Strategic Bitcoin Reserve.

Not sure who to call? Here is a list of crypto-friendly senators.

Not sure what to say? Here are some talking points we suggest:

  • USABTC is the best way to create a U.S. Strategic Bitcoin Reserve.

  • It won't require raising taxes, adding national debt, or selling gold.

  • It will attract global innovation and grow the U.S. economy.

  • Supporting USABTC ensures America's financial leadership in a changing world.

2. Signal sBTC (coming soon)

2. Signal sBTC (coming soon)

Once the USABTC protocl activates, you can signal support for USABTC with an sBTC lock-up, showing policymakers that there is growing Bitcoin capital ready to enter the BEZ.

You maintain full custody over your funds and there are no costs beyond gas fees.

How to signal sBTC:

  1. Download and open Leather Wallet

  1. Add Bitcoin

  1. Swap for sBTC

  1. Once the protocol is live, transfer sBTC into USABTC smart contract

Implementation Plan

Implementation Plan

Phase 1: Build & Accumulation

Phase 1: Build & Accumulation

  • Infrastructure Development: Finalize the technical platform: smart contracts, secure wallets, and regulatory compliance. Conduct audits to ensure robustness, transparency, 

and legal soundness.

  • Accumulating Interest: Launch the BEZ signaling phase, allowing users to lock sBTC into the USABTC contract. Users retain full custody and can unlock funds anytime, signaling interest ahead of legislation.

Phase 2: Legislative Initiation

Phase 2: Legislative Initiation

  • Executive Directive (Optional): The President symbolically endorses integrating Bitcoin into U.S. financial strategy and authorizes Treasury preparations via the ESF.

  • Bill Introduction: A senator introduces legislation to establish USABTC, exempt BTC-to-USABTC conversions and BEZ holdings from capital gains tax, and implement a 10% exit tax on withdrawals. No capital gains are realized until exiting the BEZ.

  • Legal & Regulatory Framework: Legal advisors finalize opinions aligning the bill 

with existing tax precedents, ensuring IRS compliance without separate approval.

Phase 3: Enactment & IRS Guidance

Phase 3: Enactment

  • Congressional Passage: The bill amends the Internal Revenue Code to cement BEZ tax provisions.

  • IRS Implementation: The IRS issues guidance clarifying compliance, including reporting forms and requirements, ensuring a smooth rollout.

Frequently Asked Questions

Frequently Asked Questions

What is USABTC?

Why participate in the Bitcoin Economic Zone?

What is the exit tax mechanism and how does it work?

What causes the exit tax to activate or deactivate?

How do USABTC transactions and the exit tax work?

Why exit the Bitcoin Economic Zone?

Is my Bitcoin secure with USABTC?

Can users self-custody their Bitcoin within USABTC?

What cryptographic assurances would be in place to prevent asset seizure?

How would USABTC handle security and vulnerabilities?

How would USABTC impact the U.S. economy?

Why does USABTC matter for U.S. lawmakers?

How would USABTC ensure regulatory compliance?

Will USABTC be open to international users?

How would USABTC affect trade agreements with other countries?

How would USABTC attract developers and innovators?

What is USABTC?

Why participate in the Bitcoin Economic Zone?

What is the exit tax mechanism and how does it work?

What causes the exit tax to activate or deactivate?

How do USABTC transactions and the exit tax work?

Why exit the Bitcoin Economic Zone?

Is my Bitcoin secure with USABTC?

Can users self-custody their Bitcoin within USABTC?

What cryptographic assurances would be in place to prevent asset seizure?

How would USABTC handle security and vulnerabilities?

How would USABTC impact the U.S. economy?

Why does USABTC matter for U.S. lawmakers?

How would USABTC ensure regulatory compliance?

Will USABTC be open to international users?

How would USABTC affect trade agreements with other countries?

How would USABTC attract developers and innovators?

What is USABTC?

Why participate in the Bitcoin Economic Zone?

What is the exit tax mechanism and how does it work?

What causes the exit tax to activate or deactivate?

How do USABTC transactions and the exit tax work?

Why exit the Bitcoin Economic Zone?

Is my Bitcoin secure with USABTC?

Can users self-custody their Bitcoin within USABTC?

What cryptographic assurances would be in place to prevent asset seizure?

How would USABTC handle security and vulnerabilities?

How would USABTC impact the U.S. economy?

Why does USABTC matter for U.S. lawmakers?

How would USABTC ensure regulatory compliance?

Will USABTC be open to international users?

How would USABTC affect trade agreements with other countries?

How would USABTC attract developers and innovators?

Get USABTC Updates

Periodic emails on USABTC's progress towards becoming law.

Get USABTC Updates

Periodic emails on USABTC's progress towards becoming law.

Get USABTC Updates

Periodic emails on USABTC's progress.