Rep. Warren Davidson has introduced the Bitcoin for America Act, aiming to permit federal tax payments in Bitcoin. Collected funds would build a new Strategic Bitcoin Reserve, which Davidson claims will boost US financial stability and leadership in digital assets.
The proposal follows President Trump’s March 2025 executive order creating a Strategic Bitcoin Reserve, signaling greater congressional interest in formalizing Bitcoin’s role in the federal financial system.
Bill Emphasizes Bitcoin, Sparking Debate Over Market Neutrality
The Bitcoin for America Act stands out for its exclusive focus on Bitcoin, in contrast to more comprehensive frameworks, such as the Digital Asset Market Clarity Act.
Davidson’s bill would let taxpayers pay federal taxes in Bitcoin, channeling those payments directly into a Strategic Bitcoin Reserve. This reserve aims to diversify government holdings beyond traditional assets.
Davidson highlights Bitcoin’s fixed supply of 21 million coins as a defense against inflation and volatility. He says the reserve could reduce reliance on debt-financed spending and protect the US from currency devaluation/
According to the Ohio representative, this would give the country an edge over global competitors such as China and Russia, which have developed their own digital asset strategies.
However, this Bitcoin-specific approach has sparked criticism. Singling out one cryptocurrency may risk distorting competition and impeding growth in the digital asset space. Critics warn that focusing solely on Bitcoin might limit broader innovation in the digital asset market.
“Why only Bitcoin? This is classic politicians trying to pick winners and losers. We’ve seen enough of this market rigging,” one user challenged.
The plan also introduces practical challenges. The IRS currently treats digital assets as property, requiring taxpayers to report any income from their activities.
Recent IRS guidance has clarified that all income from digital assets must be reported. Accepting Bitcoin for taxes would mean new systems for valuation, conversion, and custody, issues Davidson’s release does not address.
Building on an Executive Foundation
Davidson’s bill extends President Trump’s March 2025 executive order, which created the Strategic Bitcoin Reserve and US Digital Asset Stockpile.
The executive order tasked the Treasury Department with overseeing custodial accounts for Bitcoin and digital assets seized in federal cases, instructing officials to retain these assets rather than sell.
The Bitcoin for America Act would introduce a separate acquisition route by accepting voluntary tax payments in Bitcoin. Davidson promotes this as widening taxpayer choice and letting the government hold an appreciating asset.
He presents the reserve as a safeguard against inflation, arguing that Bitcoin’s built-in scarcity makes it advantageous compared to fiat currencies.
Davidson also points to increased financial inclusion. About 5.9 million US households do not use traditional banks, according to the Federal Deposit Insurance Corporation. Crypto advocates argue that digital wallets can serve these individuals, although critics contend that price fluctuations and technical barriers remain obstacles to everyday use.
Legislative Push Reflects Policy Tensions
Davidson introduced the bill in coordination with the Bitcoin Policy Institute, a nonprofit organization that supports Bitcoin adoption.
Davidson represents Ohio’s 8th District, known for its crypto-friendly policy stance. His bill differs from the bipartisan BITCOIN Act of 2025, which outlined strategic reserve management but did not include tax payment paths.
This latest debate reveals underlying questions about the government’s role in shaping digital technology markets.
Supporters say federal adoption confirms Bitcoin’s legitimacy and strengthens the country’s leadership in digital finance. Detractors argue that the government should maintain neutrality, supporting open competition rather than backing single technologies. Whether Congress should favor one cryptocurrency will be a central issue in policy discussions going forward.
As the Bitcoin for America Act moves through Congress, lawmakers will weigh a focused Bitcoin strategy against broader integration of digital assets. Their response could shape U cryptocurrency policy and the future of blockchain innovation nationwide.
