US Congressman Proposes Bill Allowing Federal Tax Payments In Bitcoin
Ohio Representative Warren Davidson has introduced legislation that allows Americans to make federal tax payments in Bitcoin without incurring capital gains, a move aimed at boosting the US Strategic Bitcoin Reserve.
The Bitcoin for America Act intends to diversify national wealth into non-inflationary assets that can act as a long-term store of value.
The Bitcoin For America Act
Representative Warren Davidson, a longtime ally of the crypto industry, has introduced a bill to allow individuals and businesses to pay federal taxes in Bitcoin (BTC) without triggering capital gains liability. The bill, called the Bitcoin for America Act, directs the fund into the US Strategic Bitcoin Reserve, providing a new funding mechanism for a federal crypto stockpile. A press release on Representative Davidson’s official website quoted him as stating,
“The Bitcoin for America Act marks an important step toward modernizing our financial systems and embracing the innovation that millions of Americans already use every day. By allowing taxpayers to pay federal taxes in Bitcoin and having the proceeds placed into the Strategic Bitcoin Reserve, the nation will benefit by having a tangible asset that appreciates in value over time—unlike the U.S. dollar, which has steadily lost value under inflationary pressures.”
Davidson added that the bill was aimed at strengthening America’s economy and positioning it at the forefront of global digital asset leadership. He added that the bill would give the American people more choice in paying taxes and provide the US government with a stronger financial foundation. Taxpayers will also be able to decide how the taxes are spent, with the funds allocated to the Strategic Bitcoin Reserve instead of other government expenditures.
A Long-Time Bitcoin Advocate
Speaking with the Bitcoin Policy Institute, Davidson stated that he regrets that Congress did not listen to him in 2016, when BTC was trading around $500.
“Think about the upside in terms of what it could do for a country that’s $38 trillion in debt.”
Connor Brow, Head of Strategy at BPI, stated,
“The Bitcoin for America Act proves that a strategic Bitcoin reserve doesn’t need to be a top-down mandate. By letting Americans voluntarily contribute bitcoin through their tax payments, it creates the first truly democratic, market-driven model for national bitcoin accumulation.”
Similar Proposals
Several similar proposals attempting to establish a Strategic Bitcoin Reserve have also reached Congress. However, none of the bills have advanced. Senator Cynthia Lummis had introduced legislation that would have seen the US purchase up to $80 billion worth of BTC through the issuance of new certificates, re-rating the Federal Reserve’s gold holdings. Representative Byron Donalds introduced a bill proposing the addition of BTC to the Strategic Reserve through budget-neutral actions or the seizure of assets in criminal or civil proceedings, striking a middle path between other proposals.
Potential Reserve Output
The Bitcoin Policy Institute formally endorsed the Bitcoin for America Act, working with BitcoinQuant to create a model forecasting the potential reserve output if Americans pay their federal taxes in BTC. According to their prediction model, if Americans paid 1% of federal taxes in BTC from January 2025 to the end of 2026, the reserve could gain over 2.6 million BTC, worth around $230 billion at current prices.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.