Congressional Republican Proposes “BTC for America” Act to Let Taxpayers Use BTC for Federal Levies
A newly introduced bill by Republican Warren Davidson would permit individuals and corporations in the United States to pay federal taxes using BTC. The proposal would direct BTC payments into a strategic government reserve rather than converting them to dollars, a move intended to give taxpayers additional payment options while positioning the United States to hold an appreciating digital asset.
The bill argues that enabling tax payments in BTC would allow the government to gain exposure to digital assets without engaging in open-market purchases, thereby reducing potential market disruption. Davidson also contends that the initiative could strengthen the country’s financial resilience by adding a non-sovereign asset to federal balance sheets.
Key provisions and policy goals
Under the proposed structure, taxpayers who choose to pay in BTC would not report capital gains or losses on those transactions. The BTC received would be credited to a strategic reserve controlled by federal authorities, assisting create a long-term accumulation mechanism. Proponents frame the bill as a step toward maintaining U.S. financial competitiveness as digital assets become more relevant to global markets.
However, specific operational details remain unclear. Agencies such as the Internal Revenue Service and the Treasury Department would need to create new mechanisms to process BTC payments, establish valuation rules, and manage reserve operations. The bill provides limited guidance on how custodial responsibilities, audit requirements, or conversion policies would be handled.
Regulatory and administrative challenges
Critics argue that the proposal may introduce complexities that outweigh the benefits. Issues include volatility management, tax enforcement, and the potential need to convert BTC into dollars to meet budgetary requirements. Some policy analysts warn that allowing payments in BTC could complicate revenue forecasting and introduce liquidity constraints if the government opts not to liquidate holdings.
Additionally, legal and regulatory systems would need to adapt to govern the handling of digital assets at a federal level. Without clear standards, the initiative could create inconsistencies across agencies responsible for financial reporting, cybersecurity, and compliance.
If enacted, the bill could act as a catalyst for further digital-asset legislation, particularly around custody, treasury management, and national crypto reserves. Policymakers and financial institutions would likely examine whether BTC should be classified as a strategic asset comparable to commodities such as gold or rare industrial metals.
The bill may also influence how states and municipalities structure their own fiscal frameworks. Some jurisdictions have already explored accepting crypto for payments, though implementation has remained limited. A federal precedent could accelerate adoption and encourage new models for public funding and investment.
Looking ahead, the proposal will move to committee review before any vote can be scheduled. Passage is uncertain given political dynamics and regulatory concerns. Nonetheless, the bill marks a significant development in efforts to integrate digital assets into the U.S. fiscal system and may shape future approaches to government asset diversification.
