A new proposal in the U.S. Congress seeks to reshape how Americans interact with both the tax system and digital assets. The “Bitcoin for America Act,” introduced by Ohio Representative Warren Davidson, outlines a framework that would allow citizens to pay federal taxes using Bitcoin. Any BTC collected through this process would be added directly to the country’s planned Strategic Bitcoin Reserve—an initiative first signalled earlier this year through an executive order signed by former President Donald Trump.
Davidson argues that the move would strengthen America’s long-term economic position by diversifying national wealth into a scarce, non-inflationary asset. He warns that the United States risks lagging behind global competitors such as China and Russia, both of which are exploring state-backed digital asset strategies. According to him, adopting Bitcoin within the tax system offers Americans more flexibility while giving the government exposure to an asset with strong appreciation potential. He framed the legislation as a step toward modernising financial infrastructure and ensuring U.S. leadership in the evolving landscape of “sound money” and digital innovation.
Several lawmakers have floated related proposals in recent months, though none have advanced. Senator Cynthia Lummis previously introduced a bill that would have authorised up to $80 billion in public Bitcoin purchases, financed through a revaluation of the Federal Reserve’s gold certificates. Another proposal from Representative Byron Donalds suggested a more conservative path, limiting additions to the reserve to budget-neutral sources or seized assets from legal proceedings.
Davidson’s bill positions itself between these extremes. Rather than relying on large government purchases or restrictive funding channels, it pushes for a voluntary, citizen-driven approach. Conner Brown, head of strategy at the Bitcoin Policy Institute, described it as the first model that allows everyday taxpayers to directly build the national reserve. His organisation has endorsed the bill and worked with BitcoinQuant to model potential outcomes. Their projections suggest that if only 1% of federal taxes were paid in Bitcoin from January 2025 through 2030, the reserve could accumulate more than 2.6 million BTC—currently valued at roughly $230 billion.
Supporters argue that the long-term benefit lies in holding an asset that has historically appreciated, especially when compared to the weakening purchasing power of the U.S. dollar. Davidson echoed this view, emphasising that channelling Bitcoin tax payments into the reserve could create a stronger financial buffer for the country.
The bill arrives as Bitcoin continues to face strong market pressure. The asset slipped again on Thursday, losing around 1% in 24 hours to trade near $88,769. It now sits nearly 30% below its August peak of above $126,000, reflecting broader volatility across the crypto market.
