Rep. Warren Davidson has introduced a new bill that would allow Americans to pay their federal taxes using Bitcoin. The proposed legislation, called the “Bitcoin for America Act,” directs all Bitcoin tax payments into a national Strategic Bitcoin Reserve. The goal is to strengthen the United States’ position in the global digital asset landscape and improve long-term financial stability.
Davidson’s proposal outlines a plan to modernize how the federal government manages money. In his press release, he emphasized that Bitcoin already plays a major role in the financial lives of millions of Americans, and that national policy must keep pace with current technological and economic realities. He warned that without adopting forward-looking measures, the U.S. risks falling behind other nations that are rapidly expanding their Bitcoin reserves. Taiwan, for example, is planning to build a national Bitcoin reserve using seized BTC by year-end—a sign of rising global interest in sovereign crypto holdings.
Under the bill, taxpayers would be permitted to pay the federal government directly in Bitcoin. Every Bitcoin received would immediately be added to the Strategic Bitcoin Reserve. Davidson argues that this reserve would act as a long-term appreciating national asset, unlike the U.S. dollar, which loses purchasing power over time due to inflation. The proposal also aims to give Americans more flexibility in how they pay taxes while improving government finances by increasing exposure to appreciating assets rather than relying on debt-based systems. With Bitcoin’s fixed supply, Davidson believes the reserve could protect national finances against currency debasement in the long run.
The introduction of the bill comes at a moment when global competition around digital assets is accelerating. Countries such as China and Russia are actively expanding their Bitcoin holdings. Recent disputes, including China’s claim that the U.S. now possesses 127,000 of its Bitcoins, highlight the growing geopolitical significance of crypto reserves. Davidson cautioned that the U.S. could lose influence if it fails to adapt.
The bill’s background section explains that the Strategic Bitcoin Reserve is intended to shield the national balance sheet from inflation, reduce financial vulnerabilities, and strengthen long-term economic stability. It would also decrease dependence on traditional monetary policy by offering a more stable store of value. Additional policy efforts, such as the Treasury’s move to ease tax rules on unrealized Bitcoin gains, further signal that federal attitudes toward digital assets are shifting. Overall, the plan seeks to reduce national debt exposure and secure the country’s financial future through a strategic embrace of Bitcoin.
