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Representative Warren Davidson introduced the Bitcoin for America Act, with the aim of allowing federal taxes to be paid in Bitcoin. The funds raised will be used to build a strategic Bitcoin reserve, which Davidson says will strengthen financial stability and the United States’ leadership in the digital asset.
This proposal follows President Trump’s March 2025 executive order establishing a strategic Bitcoin reserve, indicating a major interest from Congress in codifying Bitcoin’s role in the federal financial system.
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A bill highlights Bitcoin, sparking debate on market neutrality
It is distinct Bitcoin Law for America With its exclusive focus on Bitcoin, in contrast to more comprehensive frameworks such as the Digital Assets Market Clarity Act .
Davidson’s bill would allow taxpayers to pay federal taxes in bitcoin, directing those payments directly to… Bitcoin strategic reserve. This reserve aims to diversify the government’s actions beyond traditional assets.
Davidson highlights Bitcoin’s limited 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 United States from currency devaluation.
According to the Ohio representative, this will give the country an advantage over global competitors such as China and Russia, which have developed strategies specifically for digital assets.
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However, this specific approach to Bitcoin has attracted critics. Focusing on a single digital currency risks distorting competition and hindering growth in the digital asset space. Critics warn that focusing only on Bitcoin may limit broader innovation in the digital asset market.
one user asked “Why only Bitcoin? This is classic politicians trying to pick winners and losers. We’ve seen enough of this market manipulation.”
The plan also presents practical challenges. The IRS currently treats digital assets as propertywhich requires taxpayers to report any income from their activities.
The latest clarified guidelines forIRS All income from digital assets must be reported. Accepting Bitcoin for taxes would mean new systems of valuation, transfer and custody, issues that Davidson’s statement did not address.
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Building on an executive foundation
Davidson’s bill extends President Trump’s executive order… March 2025which established the Bitcoin Strategic Reserve and digital asset shares in the United States.
cost Executive order The Treasury Department oversees escrow accounts for Bitcoin and digital assets seized in federal cases, instructing officials to keep these assets instead of selling them.
The Bitcoin for America Act offers a separate acquisition path by accepting voluntary tax payments in Bitcoin. Davidson promoted this as expanding taxpayer options and allowing the government to keep assets that appreciate.
He proposes the reserve as a protection against inflation, arguing that the built-in scarcity of Bitcoin makes it advantageous compared to fiat currencies.
Davidson also points to an increase in financial inclusion. About 5.9 million American households do not use traditional banks, according to the Foundation Federal deposit insurance. Cryptocurrency advocates argue that digital wallets can serve these individuals, although critics argue that price fluctuations and technical hurdles remain obstacles to everyday use.
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The legislative push reflects political tensions
Davidson introduced the project in coordination with the Bitcoin Policy Institute, a non-profit organization that supports the adoption of Bitcoin.
Davidson represents Ohio’s 8th District, known for its cryptocurrency-friendly position. His bill differs from the bipartisan Bitcoin Act of 2025, which defines the management of the strategic reserve, but does not include methods for paying taxes.
This recent controversy reveals underlying questions about the role of government in shaping digital technology markets.
Supporters say the adoption of federalism confirms the legitimacy of Bitcoin and strengthens the country’s leadership in… Digital finance. Critics object that the government should be neutral, supporting open competition rather than unique technologies. The question of whether Congress should favor a single cryptocurrency will be a central issue in future political debates.
As the Bitcoin for America Act moves through Congress, lawmakers are weighing a focused Bitcoin strategy against the broader integration of digital assets. Their answer could shape cryptocurrency policy and the future of blockchain innovation across the country.
