The Bitcoin for America Act aims to diversify national wealth into a non-inflationary asset serving as long-term store of value.
Bitcoin News
Ohio Representative Warren Davidson introduced legislation on Thursday that would allow Americans to pay federal taxes in Bitcoin, with those payments directed into the U.S. Strategic Bitcoin Reserve. The Bitcoin for America Act aims to diversify national wealth into a non-inflationary asset serving as long-term store of value.
Davidson stated the bill would give the American people more choice in paying taxes while providing the government a stronger financial foundation. He noted the legislation will position the country to lead rather than follow as the world navigates the future of sound money and digital innovation.
The bill would allow both individual and corporate taxpayers to pay taxes in Bitcoin, according to Davidson's comments to the Bitcoin Policy Institute. Taxpayers could decide how taxes are spent by paying in Bitcoin, with funds allocated to the strategic reserve instead of other government expenditures like foreign aid.
President Donald Trump signed an executive order months into his administration to create a strategic Bitcoin reserve from approximately 200,000 Bitcoin already owned by the federal government. The coins were forfeited as part of criminal or civil proceedings, excluding those still needing to be returned to crime victims. Republican lawmakers have since introduced multiple bills to codify a strategic Bitcoin reserve into law.
Similar proposals have circulated Congress attempting to establish the Strategic Bitcoin Reserve, though none have advanced to passage. Senator Cynthia Lummis introduced legislation that would have seen the United States purchase up to $80 billion worth of Bitcoin, funding the initiative through issuance of new certificates re-rating Federal Reserve gold holdings.
Representative Byron Donalds later introduced a bill adding Bitcoin to a Strategic Reserve only via budget-neutral actions or through seizure of funds in criminal or civil proceedings. Davidson's proposal takes a middle approach between previous legislative attempts.
The Bitcoin Policy Institute formally endorsed the bill and worked with BitcoinQuant to create a forecasting model showcasing potential reserve output if Americans start paying taxes in Bitcoin. Based on the model, if 1% of federal taxes were paid in Bitcoin starting Jan. 1, 2025 until the end of 2030, the reserve could gain more than 2.6 million Bitcoin worth $230 billion at current prices.
Conner Brown, head of strategy at Bitcoin Policy Institute, stated the bill proves a strategic Bitcoin reserve does not need to be a top-down mandate. By letting Americans voluntarily contribute Bitcoin through tax payments, it creates the first truly democratic, market-driven model for national Bitcoin accumulation. Detroit became the largest U.S. city to allow residents to pay taxes and other city fees in crypto earlier this year. Bitcoin traded around $88,769 on Thursday, down nearly 30% from its August all-time high above $126,000 as markets continued processing rate cut expectations and broader crypto market weakness.
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