Representative Warren Davidson introduced the Bitcoin for America Act, which would allow federal tax payments to be made in Bitcoin. These tax revenues would be used to create a new Strategic Bitcoin Reserve, which Davidson said would enhance America's financial stability and Vai in the digital asset space.
The proposal comes on the heels of President Trump's March 2025 executive order creating a Strategic Bitcoin Reserve, signaling growing interest from Congress in formalizing Bitcoin's Vai in the federal financial system.
Bitcoin for America Act: Focus solely on Bitcoin
The Bitcoin for America Act stands out for its exclusive focus on Bitcoin, in contrast to broader legal frameworks like the Digital Asset Market Clarity Act .
Davidson's bill would allow taxpayers to pay federal taxes in Bitcoin, transferring those payments directly into the Strategic Bitcoin Reserve Fund , in a bid to diversify the government's assets beyond traditional assets.
America's strategic advantage with bitcoin reserves
Davidson highlighted Bitcoin’s fixed supply of 21 million coins as a way to hedge against inflation and volatility. He said the reserve could reduce reliance on debt financing spending and protect the US from currency devaluation.
This would give the country an advantage over global rivals like China and Russia, which have developed their own digital asset strategies, the Ohio representative said.
criticisms and practical challenges
However, the Bitcoin-only approach has drawn criticism. Focusing on one cryptocurrency could distort competition and hinder development in the digital asset space. Critics warn that focusing solely on Bitcoin could limit broader innovation in the digital asset market.
“Why just Bitcoin? These are politicians trying to pick winners and losers. We have seen enough of this market fraud,” one user challenged .
The plan also presents practical challenges. The Internal Revenue Service currently treats digital assets as property , requiring taxpayers to report income from their activities.
New IRS guidance makes it clear that all income from digital assets must be reported. Accepting Bitcoin for tax purposes would require new systems for valuation, conversion, and escrow, issues that Davidson’s release does not address.
strategic bitcoin storage solution
Davidson's bill expands on President Trump's March 2025 executive order creating the Strategic Bitcoin Reserve and the U.S. Digital Asset Warehouse.
The executive order tasks the Treasury Department with overseeing escrow accounts for Bitcoin and digital assets seized in federal cases, directing officials to hold these assets rather than sell them.
The Bitcoin for America Act would introduce a private procurement path by accepting voluntary tax payments in Bitcoin. Davidson pitched the idea to expand taxpayer choice and allow the government to hold an asset that is appreciating in value.
He proposed that the reserve fund would be a hedge against inflation, arguing that Bitcoin's inherent scarcity gives it an advantage over fiat currencies.
Davidson also pointed to growing financial inclusion. About 5.9 million US households do not use traditional banks, according to the Federal Deposit Insurance Corporation . Cryptocurrency advocates say digital wallets can serve these people, although critics say price volatility and technical barriers remain obstacles to everyday use.
Support and problems with the new law
Davidson introduced the bill in collaboration with the Bitcoin Policy Institute, a nonprofit organization that advocates for Bitcoin adoption.
Davidson represents Ohio’s 8th District, known for its crypto-friendly policies. His bill differs from the bipartisan BITCOIN Act of 2025, which directs the management of strategic reserves but does not include a tax payment path.
This latest debate reveals fundamental questions about the Vai of government in shaping digital technology markets.
Supporters argue that government support validates Bitcoin and strengthens the country's Vai in digital finance . Opponents argue that the government should remain neutral and support open competition rather than backing a single technology. Whether Congress should back a single cryptocurrency will be central to upcoming policy discussions.
As the Bitcoin for America Act moves through Congress, lawmakers will weigh the pros and cons of a Bitcoin-focused strategy versus broader integration of digital assets. Their response could shape U.S. cryptocurrency policy and the future of blockchain innovation across the country.
