Bitcoin Magazine
Congressman Warren Davidson Introduces Bitcoin For America Act, Proposes Federal Tax Free Payments in Bitcoin
Rep. Warren Davidson (R-OH) introduced today the Bitcoin For America Act in the U.S. House of Representatives, a landmark proposal designed to modernize the U.S. financial system and position the nation at the forefront of the global digital asset economy.
The bill would allow Americans to pay federal taxes in bitcoin, with all proceeds deposited into a newly created Strategic Bitcoin Reserve (SBR).
“By allowing taxpayers to pay federal taxes in Bitcoin and directing those funds into a Strategic Bitcoin Reserve, the nation gains a tangible asset that appreciates over time—unlike the U.S. dollar, which is susceptible to inflation,” Davidson said. “This bill strengthens the nation’s financial foundation and positions the U.S. to lead—not follow—in the global race toward sound money and digital innovation.”
Under the proposed legislation, taxpayers would be able to transfer bitcoin (BTC) to the Treasury or to approved financial agents designated by the Secretary of the Treasury.
The transferred BTC would count as full satisfaction of tax liabilities, with no capital gains recognized on the transaction. Fair market value at the time of transfer would determine the amount credited, similar to how foreign currency payments are handled today.
JUST IN:
Congressman Warren Davidson introduces "#Bitcoin for America" bill to:
– Codify the Strategic Bitcoin Reserve Executive Order
– Eliminate capital gains tax when paying taxes with BTC pic.twitter.com/cFrqDEOfsE— Bitcoin Magazine (@BitcoinMagazine) November 20, 2025
The bill also empowers the Treasury to establish robust custody measures for the Strategic Bitcoin Reserve. Provisions include cold storage, multi-signature wallets, and geographically distributed storage facilities.
BTC deposited into the reserve would be held for at least 20 years, according to the bill, with limited scheduled dispositions allowed only after that period, ensuring the assets are preserved for future generations.
The bitcoin bill’s strategic implications
The legislation is intended to bolster national financial resilience by diversifying U.S. assets into a non-inflationary, appreciating store of value.
The 21 million-coin supply of BTC creates inherent scarcity, offering a hedge against long-term currency devaluation. Davidson and supporters argued in a conversation with the Bitcoin Policy Institute (BPI) that this move reduces reliance on debt and strengthens the U.S. balance sheet.
Other major nations, like China and Russia are “already accumulating Bitcoin,” Davidson contends. By adding BTC into federal finances, Davidson believes the United States can maintain its competitive edge in the digital economy.
“Other nations are actively acquiring Bitcoin to diversify reserves and protect against global financial instability,” the bill notes. “The United States risks falling behind unless it takes a similar approach.”
In his conversation with BPI, Davidson discussed the long-term national benefits of the bill, noting that if the United States had been accumulating the crypto since 2012, it could help address the nation’s $38 trillion debt.
Davidson also stressed that the bill is opt-in and democratic, explaining, “every American can basically make the choice at the end of the year… to contribute to the reserve.”
On the broader vision for sound money, he argued, “money is increasingly designed as a surveillance system… Bitcoin’s premise is kind of a return to sound money… separating money from the state.”
The act also highlights BTC’s decentralized, permissionless system as a tool to expand financial access.
By enabling payment of federal taxes in BTC, the government can provide more Americans — including unbanked or underserved populations—an opportunity to participate in the digital economy.
At the time of writing, BTC’s price is $90,480.
For context, back in March, the U.S. formally established a Strategic Bitcoin Reserve via an executive order signed by President Trump, making it the largest nation-state BTC holder with an estimated 200,000 BTC.
Funded entirely through government-held assets seized in criminal and civil proceedings, the reserve cost taxpayers nothing. The order mandates a full audit of federal BTC holdings, prohibits any sales from the reserve, and allows budget-neutral acquisitions of additional BTC.
This post Congressman Warren Davidson Introduces Bitcoin For America Act, Proposes Federal Tax Free Payments in Bitcoin first appeared on Bitcoin Magazine and is written by Micah Zimmerman.
