Breaking News! Americans May Soon Pay Taxes with Bitcoin as Congressman Submits New Bill

Warren Davidson, a Republican member of the House of Representatives, has submitted a significant new bill that could pave the way for U.S. citizens to formally pay federal taxes using Bitcoin (BTC). The proposal also includes a key incentive: an exemption from Capital Gains Tax on the Bitcoin used for tax payments. Furthermore, the BTC revenue collected by the government would be used to establish a U.S. Strategic Bitcoin Reserve Fund.

🇺🇸 The "Bitcoin for America Act": Elevating U.S. Financial Structure

The bill, titled the "Bitcoin for America Act," reflects a major push to integrate Bitcoin into the nation's financial system in a serious manner.

Davidson argues that a growing number of Americans already use crypto in their daily lives, and it is time for the government to “adapt to the new world of finance.” A long-time Bitcoin supporter since 2012, Davidson believes Bitcoin’s hard-capped supply could become a crucial asset in hedging the country's currency risk.

🚫 Capital Gains Exemption: Removing Friction for Daily BTC Use

A major hurdle hindering the widespread adoption of crypto for daily transactions in the U.S. is the current tax law, which treats Bitcoin as "Property." This requires users to report capital gains or losses every time they spend or sell the asset.

Davidson’s bill proposes to exempt Capital Gains Tax when BTC is used to settle tax liabilities. This would remove a significant barrier and could accelerate the structural adoption of BTC, encouraging broader acceptance.

🏛️ Strategic Bitcoin Reserve: Enhancing Fiscal Power Without Tax Dollars

While President Donald Trump previously approved the establishment of a Strategic Bitcoin Reserve, its implementation has been stalled due to budgetary constraints.

The solution proposed in Davidson’s bill is to utilize the Bitcoin received from citizen tax payments to directly fund the reserve, without spending a single dollar of taxpayer money.

• Currently: The U.S. government holds approximately 198,012 BTC, valued at about $17 billion USD, mostly acquired through seizures in past cybercrime cases.

• The New Bill: Aims to increase Bitcoin holdings through "voluntary" contributions from the public via tax payments, rather than mandatory taxation.

This proposal comes at a time when BTC is facing heavy selling pressure, currently trading at $84,591. However, Davidson remains confident that Bitcoin's long-term value potential remains high, driven by its 21 million hard cap supply and continually expanding global utility.