U.S. House Bill Would Allow Federal Taxes in BTC While Aiding U.S. Reserve

Overview

A new piece of legislation has been introduced by Rep. Warren Davidson that aims to allow federal tax payments in Bitcoin. This initiative is designed to enhance the U.S. Strategic Bitcoin Reserve while eliminating the capital gains tax that typically accompanies such transactions.

Details of the Legislation

Rep. Warren Davidson’s proposed bill seeks to enable taxpayers to settle their federal tax obligations using Bitcoin. A significant aspect of this legislation is that it would allow these transactions to occur without triggering capital gains taxes, which are usually applicable when converting assets into cash or other forms of payment.

This move is part of a broader strategy to bolster the U.S. Strategic Bitcoin Reserve, which could potentially enhance the country’s position in the cryptocurrency landscape. By facilitating tax payments in Bitcoin, the legislation aims to promote the use of cryptocurrency within the official financial system.

Impact on the crypto market

• The proposed legislation could increase the legitimacy of Bitcoin as a method of payment in federal transactions.
• Removing capital gains taxes on Bitcoin payments may encourage more taxpayers to utilize cryptocurrency for their tax obligations.
• This initiative could lead to a greater accumulation of Bitcoin within the U.S. Strategic Bitcoin Reserve, influencing market dynamics.
• The bill reflects a growing recognition of cryptocurrency’s role in the financial system, potentially attracting more investors to the market.
• Enhanced regulatory clarity around cryptocurrency transactions may foster a more stable environment for market participants.

Updated: 11/21/2025, 4:31:19 PM