A new legislative proposal by Ohio Congressman Rep. Warren Davidson aims to transform the way Americans pay federal taxes by allowing payments in Bitcoin. The proposed “Bitcoin for America Act” seeks to establish a method for citizens to contribute their tax dues in Bitcoin, which would subsequently be directed into a planned Strategic Bitcoin Reserve for the United States.
The bill underscores a strategic vision for the nation, suggesting that diversifying into Bitcoin could serve as a safeguard against inflation while enhancing the long-term store of value. In a statement, Rep. Davidson emphasized the urgency of the situation, arguing that without proactive measures, the U.S. risks falling behind other nations such as Russia and China, as well as emerging economies.
“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,” Davidson stated. He expressed that the bill would not only provide taxpayers with greater choices but also strengthen the financial foundation of the government.
Efforts to establish a Strategic Bitcoin Reserve have been ongoing since President Trump signed an executive order in March, although previous proposals have not advanced. Notably, a bill by Sen. Cynthia Lummis (R-WY) suggested the U.S. purchase up to $80 billion in Bitcoin through newly issued certificates tied to the Federal Reserve’s gold holdings. Meanwhile, Rep. Byron Donalds (R-FL) proposed a bill focused on adding Bitcoin to a reserve through budget-neutral measures or seizing funds from criminal and civil cases.
Davidson’s initiative reportedly seeks a balanced approach to the issue. Conner Brown, head of strategy at the Bitcoin Policy Institute, remarked that the Bitcoin for America Act presents a unique opportunity for citizens to voluntarily contribute Bitcoin through tax payments, thereby creating a democratic model for national Bitcoin acquisition.
The Bitcoin Policy Institute has formally endorsed the bill and collaborated with BitcoinQuant to develop a forecasting model. This model projects that if 1% of federal taxes are paid in Bitcoin from January 1, 2025, through the end of 2030, the reserve could accumulate over 2.6 million BTC, valued at approximately $230 billion at current market rates.
Davidson pointed out that transitioning to Bitcoin for tax payments would enable the nation to secure an appreciating asset, contrasting with the declining value of the U.S. dollar, which has been affected by ongoing inflation.
As the legislative discussions unfold, Bitcoin itself experienced a decline, dropping about 1% and trading at $88,769. This marks a significant decrease of nearly 30% from its recent all-time high above $126,000 recorded in August.
