Bitcoin for America Act: US Lawmaker Seeks BTC Tax Option With 20-Year Treasury Rules

A nationwide boost for taxpayers takes shape as a new plan would let Americans use bitcoin for federal payments while building a long-term reserve designed to protect purchasing power, expand choice, and strengthen the country’s financial footing.

US Lawmaker Champions Bitcoin for America Act With Multi-Decade Asset Retention

A wave of digital-asset policy momentum is building in Washington. Rep. Warren Davidson announced on Nov. 20 that he introduced the “ Bitcoin For America Act,” aiming to let taxpayers settle federal liabilities in bitcoin and route those inflows into a Strategic Bitcoin Reserve, a structure designed to reinforce long-term fiscal stability.

The U.S. lawmaker said:

The Bitcoin For America Act marks an important step toward modernizing our financial systems and embracing the innovation that millions of Americans already use every day.

He stated that directing bitcoin tax receipts into the Reserve would create a store of value insulated from inflation, giving the government a stronger base while expanding payment choice for citizens.

Legislative text reviewed from the bill shows a framework that treats bitcoin transfers as tax payments once network confirmations occur, assigns fair-value rules similar to foreign-exchange references, and prevents taxable gains when bitcoin is used to satisfy federal liabilities. The measure also outlines custody, security, and long-term retention standards for the Reserve, requiring Treasury to hold assets for at least 20 years before limited sales may occur.

Read more: Treasury Secretary Confirms US to Acquire Bitcoin for Reserve via Budget-Neutral Tactics

Supporters argue that the fixed supply of bitcoin and its independence from monetary intervention provide a hedge against long-term currency erosion, while global competitors accumulate digital reserves that could shift financial power. Pro-crypto analysts contend the proposal may broaden financial access, introduce portfolio diversification into national accounts, and position the United States to compete in the ongoing transition toward decentralized value networks.

FAQ ⏰

• What does the Bitcoin For America Act allow taxpayers to do?

It enables taxpayers to settle federal liabilities using bitcoin.

• How would bitcoin tax receipts be handled under the proposal?

They would flow into a Strategic Bitcoin Reserve aimed at long-term fiscal strength.

• What protections does the bill outline for the bitcoin reserve?

It mandates custody, security, and 20-year minimum retention requirements.

• Why do supporters believe the Reserve strengthens U.S. competitiveness?

They argue bitcoin’s fixed supply and global adoption could shift financial power toward digital reserves.