Bitcoin for America Act Would Let Americans Pay Taxes in BTC, Build Strategic US Bitcoin Reserve

Representative Warren Davidson has put forward new legislation that would allow Americans to settle their federal tax obligations using Bitcoin, proposing that these payments be routed directly into a national Strategic Bitcoin Reserve. The Bitcoin for America Act is a move to reinforce the country’s long-term economic resilience and modernise its financial infrastructure. 

The bill is intended to make use of technology already embraced by many Americans, while strengthening the government’s financial position through the accumulation 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 US dollar, which has steadily lost value under inflationary pressures.

Representative Warren Davidson

Under the bill, taxpayers would have the option to pay federal taxes in Bitcoin, with all such payments added to the Strategic Bitcoin Reserve as a national holding. The reserve is designed to provide a store of value that is insulated from inflation and financial instability, with supporters highlighting Bitcoin’s fixed supply of 21 million coins as a key advantage over traditional currency systems. 

Davidson has described Bitcoin as offering protection against inflation and emphasised the need for the US to keep up with other economies moving towards Bitcoin reserves, citing Taiwan as an example already taking steps in that direction.

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Keeping Up Globally

By accumulating Bitcoin, the legislation aims to diversify national assets and reduce dependence on debt and inflation-based monetary policy. Davidson has said that other countries, including China and Russia, are expanding their Bitcoin reserves and warned that the US risks falling behind if it does not act. 

The act also reflects broader efforts in Washington to integrate Bitcoin more directly into the financial system, following Treasury measures signalling greater accommodation of digital assets. 

Davidson framed the proposal as part of preparing the US for a future in which digital assets become a central component of economic activity. He told the Bitcoin Policy Institute that both individuals and companies would be able to pay taxes in Bitcoin, with those payments directed to the reserve rather than towards other government spending priorities.

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