Overview
- Rep. Warren Davidson filed the Bitcoin for America Act to permit federal tax payments in bitcoin, with liabilities satisfied at fair market value via transfers to the Treasury or approved agents.
- All bitcoin received would be deposited into a U.S. Strategic Bitcoin Reserve under Treasury custody protocols such as cold storage, multi‑signature controls, and geographically distributed facilities with a minimum 20‑year holding period.
- The legislation removes capital‑gains recognition for in‑kind BTC tax payments, addressing a key barrier that currently pushes many holders to sell for dollars before paying the IRS.
- The Bitcoin Policy Institute endorsed the bill and released an interactive model projecting large reserve builds under modest adoption, including reporting of more than 2.6 million BTC by 2030 in a 1% scenario.
- Coverage flags unresolved execution and policy questions, including Treasury and IRS system upgrades for pricing timestamps, volatility and refund handling, sanctions screening, and the broader legislative path as the proposal enters early discussion.