Bitcoin For America Act: Federal Tax-Free Payments & BTC Tax Option

By Paying taxes in Bitcoin tax-free, It will also help grow the Strategic Bitcoin Reserve. The Bill boosts Bitcoin adoption and confidence, potentially raising its high value again overtime. A major new bill has just landed in the Congress, and the entire crypto community is talking about it. On November 20, 2025, Ohio Congressman Warren Davidson introduced the Bitcoin for America Act, a proposal that would allow everyday Americans to pay their federal taxes directly with Bitcoin completely free of capital gains tax. As also in a closely related ideas shared in a recent Crypto News Flash (CNF) post on the American Bitcoin (ABTC), regulatory shifts surrounding Bitcoin and energy costs remain key factors that could make or break its long-term growth. As shared in Bitcoin Policy Institute on X: More specifically, the Bitcoin for America Act would allow Americans to make federal tax-free payments directly with Bitcoin, without triggering capital-gains tax. Every Bitcoin paid this way would flow into a new Strategic Bitcoin Reserve. In addition, As highlighted in another recent X post by Bitcoin News, the bill contains three key provisions: Codifies the Strategic Bitcoin Reserve Executive Order Allows all federal taxes to be paid in BTC with no capital gains tax Requires federal Bitcoin holdings to be held 20+ years This would allow the U. S. government to build a massive national Bitcoin stockpile without spending a single taxpayer dollar on the open market. The government already holds around 200, 000 seized coins; under this plan, millions more could be added over the coming years as people choose the BTC Tax Option. Market Implications: Bitcoin Has a Chance to Reign Again Analysts strongly believe the bill could give Bitcoin a significant market boost. By letting Americans pay taxes in BTC without additional taxes too, so more people would probably feel confident holding and using it. Meanwhile, the government accumulating Bitcoin through the Strategic Bitcoin Reserve sends a powerful signal of confidence as well. As for Bitcoin’s price outlook, the signal is strongly bullish. Removing capital-gains tax on federal tax-free payments eliminates one of the biggest barriers to real-world spending. Once that barrier breakdown, more people are likely to hold and use of their BTC confidently. Importantly, millions of Americans would also potentially choosing the BTC Tax Option would mean the government openly accumulating coins through tax payments a move that analysts say that this could trigger new institutional buying and widespread FOMO at the same time.
https://www.crypto-news-flash.com/bitcoin-for-america-act-federal-tax-free-payments-btc-tax-option/