US considers allowing Bitcoin tax payments

Americans may soon be able to pay federal taxes in Bitcoin under a new bill introduced in the House of Representatives. The proposal would send BTC tax payments straight into the US strategic reserve and spare taxpayers from capital gains reporting.

Representative Warren Davidson says that BTC tax payments allow the government to build an appreciating reserve without purchasing coins on the open market. He says that Bitcoin-based revenue strengthens the national position as the dollar continues to lose value due to inflation.

Supporters say the plan expands the reserve in a market-neutral way and signals a firmer national stance on Bitcoin adoption. They argue a dedicated reserve reduces the risk of future regulatory hostility and may push other countries to adopt similar strategies.

Critics warn that using seized or forfeited BTC to grow the reserve creates harmful incentives for enforcement agencies. Some commentators say civil asset forfeiture already needs reform, while others argue the reserve is still positive for Bitcoin’s long-term global position.

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