Go Back

US Bill Seeks Federal Taxes Paid in Bitcoin

U.S. lawmaker proposes bill allowing federal taxes to be paid in bitcoin

CATENAA, Tuesday, November 25, 2025- A US lawmaker introduced legislation Thursday that would let individuals and businesses pay federal taxes in bitcoin, directing those funds to the Strategic Bitcoin Reserve.

Rep. Warren Davidson, a Republican from Ohio, filed the Bitcoin for America Act, aiming to strengthen the government’s financial holdings and expand the role of digital assets in public finance.

The bill would enable taxpayers to allocate bitcoin payments specifically to the federal reserve rather than traditional spending programs. Davidson said the proposal could influence how government resources are managed while signaling support for limited government and increased financial freedom.

The legislation follows a presidential executive order earlier this year establishing a strategic bitcoin reserve from roughly 200,000 bitcoins obtained through forfeitures.

Under the act, corporate and individual taxpayers could choose to pay their federal obligations in bitcoin, which would then be credited to the reserve. Davidson emphasized that the initiative would position the US to lead in digital currency innovation.

The plan has drawn attention amid growing acceptance of cryptocurrency at the municipal level, with Detroit becoming the largest US city to allow residents to pay taxes and city fees in crypto earlier this year.

The legislation is part of a broader push among Republican lawmakers to formalize a federal bitcoin reserve, ensuring seized digital assets contribute to government holdings rather than being returned to victims of crimes.

Analysts say the measure could spark debate over federal fiscal policy and the integration of cryptocurrency into mainstream finance.