New legislation, the Bitcoin for America Act, would allow taxpayers to pay federal taxes in bitcoin and direct all such payments into the Strategic Bitcoin Reserve created under an executive order from President Donald Trump in March.
The bill, introduced by Rep. Warren Davidson, R-Ohio, "marks an important step toward modernizing our financial systems and embracing the innovation that millions of Americans already use every day,” Davidson said in a statement. “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."
Bitcoin transferred to the government as a tax payment would not be subject to capital gains tax, Davidson said in an interview posted on X.
"Other nations — including but not limited to China, Russia, and emerging economies — actively acquire Bitcoin to diversify their reserves and hedge against global financial instability, such that the United States risks falling behind in this strategic race," according to the bill.
Jeff Bush of The Washington Update said that while he appreciates "the desire to modernize our financial system, linking federal revenues or balance-sheet strength to an asset as volatile and speculative as Bitcoin raises serious concerns."
Tax collections, Bush continued, "are meant to provide stability and predictability for government operations — not to introduce additional fiscal risk. Bitcoin’s price swings may bring gains in some years, but they can also lead to sudden revenue shortfalls or balance-sheet shocks. Before allocating federal resources to such a volatile asset class, we should carefully consider the effects on budget planning, liquidity, and long-term fiscal stability."
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