Congressman introduces bill to permit Bitcoin tax payments and support strategic Bitcoin reserve
New legislation could make the US a pioneer in federal digital asset integration as lawmakers move to normalize Bitcoin tax payments.
Key Takeaways
- Rep. Warren Davidson has proposed a bill enabling federal tax payments in Bitcoin and allocating those payments to the US Strategic Bitcoin Reserve.
- Current tax law treats the use of Bitcoin for payments as a taxable event, creating a barrier to adoption.
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Rep. Warren Davidson today introduced legislation that would allow Americans to pay federal taxes in Bitcoin without incurring capital gains liability on the digital asset.
The proposed bill, the Bitcoin For America Act, also supports Congressional work on the Strategic Bitcoin Reserve. It seeks to place all Bitcoin received from federal tax payments into the Strategic Bitcoin Reserve.
The measure addresses a key barrier that has prevented widespread use of Bitcoin for government payments. Under current tax law, using Bitcoin to pay taxes would typically trigger capital gains taxes on any appreciation in the asset’s value.
Davidson emphasized that Bitcoin’s scarcity and long-term value appreciation could enhance US financial security while expanding payment options for Americans. The bill positions Bitcoin as a tool to counter inflation, diversify national assets, and maintain the nation’s leadership as global powers increase their own Bitcoin holdings.
