A new bill introduced by Ohio congressman Rep. Warren Davidson would allow Americans to pay federal taxes with Bitcoin with the collected BTC then ushered into the United States’ planned Strategic Bitcoin Reserve.
The “Bitcoin for America Act” would allow the United States to “diversify its national wealth into a non-inflationary asset that serves as a long-term store of value,” the bill reads, noting the potential for the nation to fall behind Russia, China, and emerging nations should there be no action.
“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,” said Rep. Warren Davidson in a statement.
“This bill will give the American people more choice in paying their taxes as well as give our government a stronger financial foundation,” he added. “The Bitcoin for America Act will position our country to lead—not follow—as the world navigates the future of sound money and digital innovation.”
Similar bills have been proposed in an attempt to codify the Strategic Bitcoin Reserve since President Trump signed an executive order to establish a reserve in March—but none have come to fruition.
A bill introduced by Sen. Cynthia Lummis (R-WY) would have seen the United States buy up to $80 billion worth of Bitcoin, funding the initiative via the issuance of new certificates that re-rated the Federal Reserve’s gold holdings. The Fed would then use the difference between the old and the new certificates to purchase Bitcoin.
Later, Rep. Byron Donalds (R-FL) introduced a bill that would only add Bitcoin to a Strategic Reserve via budget-neutral actions or through the seizure of funds in criminal or civil proceedings.
Davidson’s bill aims to take a middle ground.
“The Bitcoin for America Act proves that a strategic Bitcoin reserve doesn’t need to be a top-down mandate,” said Conner Brown, head of strategy at the Bitcoin Policy Institute, in a statement. “By letting Americans voluntarily contribute Bitcoin through their tax payments, it creates the first truly democratic, market-driven model for national Bitcoin accumulation.”
Brown’s firm has formally endorsed the bill and worked with BitcoinQuant to create a forecasting model, which showcases the potential reserve output for the nation should Americans start paying taxes in Bitcoin, as the bill would allow.
Based on the model, if 1% of federal taxes were paid in Bitcoin starting from January 1, 2025 until the end of 2030, the reserve could stand to gain more than 2.6 million BTC—$230 billion worth at the current price of Bitcoin.
“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,” said Davidson.
Bitcoin continued its slide on Thursday, dropping around 1% in the last 24 hours to change hands at $88,769. The leading crypto asset by market cap is now down nearly 30% from its August all-time high above $126,000.
Editor’s note: This story was updated after publication with additional details.
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