Bitcoin for America Act

Bill Number

H.R. 6180

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-11-20: Referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2025-12-04T21:33:01Z

AI-Generated Summary

Purpose of the Legislation

The "Bitcoin for America Act" (H.R. 6180) aims to allow individuals to pay federal taxes using Bitcoin, a digital currency, and to create a national reserve to hold these payments. It seeks to diversify U.S. financial assets into Bitcoin as a hedge against inflation and economic instability, promote financial inclusion for those using digital currencies, and position the U.S. competitively in global adoption of such assets.

Key Provisions

• Short Title and Findings (Section 1):

The bill is titled the "Bitcoin for America Act." It includes congressional findings highlighting Bitcoin's fixed supply (21 million coins), its potential as a store of value superior to traditional currencies, benefits for financial inclusion, and strategic advantages over other nations acquiring Bitcoin for reserves.

• Payment of Federal Taxes with Bitcoin (Section 2):
• Amends the Internal Revenue Code (IRC) by adding Section 6318, authorizing the Secretary of the Treasury (or delegate, like the IRS) to accept Bitcoin for paying taxes, penalties, or related amounts.
• Transfer Process: Taxpayers must send Bitcoin to a government-designated address or a third-party financial agent (e.g., a regulated bank compliant with anti-money laundering laws). Payment is considered complete after a specified number of "network confirmations" (verifications on the Bitcoin blockchain).
• Valuation: The payment amount equals the Bitcoin's fair market value at the time of transfer, determined using published reference rates similar to foreign currency exchange rates.
• Tax Treatment: No capital gains or losses are recognized on the Bitcoin transferred (up to the tax liability amount), treating it as a non-sale. Excess Bitcoin is treated as a taxable sale. Taxpayers can choose which "lots" (batches) of Bitcoin to use, with options like first-in-first-out or specific identification for tracking basis (original cost).
• Third-Party Agents: The Treasury can contract with U.S.-regulated financial institutions to handle receipt, custody, and optional conversion of Bitcoin, ensuring compliance with financial regulations.
• Reporting and Rules: The Treasury must issue guidance on documentation, valuations, acceptable platforms, and reporting by taxpayers and agents.
• Effective for payments after enactment.

• Strategic Bitcoin Reserve and Custody (Section 3):
• All Bitcoin received via taxes is deposited into a "Strategic Bitcoin Reserve" managed by the Treasury.
• Management: The Treasury can hold, store, and secure the Bitcoin (e.g., using cold storage—offline wallets—or multi-signature setups for safety). It may acquire more Bitcoin through legal means.
• Retention Rules: Bitcoin must be held long-term; it cannot be sold, traded, or disposed of for 20 years after receipt. After that, disposals are limited to no more than 5% (one-twentieth) of total holdings per year.
• Reporting: The Treasury must publish an annual public report on total holdings and security measures.
• Applies to the Secretary of the Treasury or delegates.

Significant Changes to Existing Law

• New Tax Payment Option: Introduces Bitcoin as an accepted form of payment under the IRC, previously limited to U.S. dollars or equivalents; this is the first federal authorization for a cryptocurrency in tax payments.
• Capital Gains Relief: Creates a nonrecognition rule for Bitcoin used in tax payments (similar to charitable donations but specific to taxes), altering how digital asset disposals are taxed under IRC Section 1001 (general rules for sales and exchanges).
• Reserve Creation: Establishes a new federal reserve for Bitcoin, akin to strategic petroleum or gold reserves, with strict holding periods not present in prior Treasury asset management laws. No existing U.S. law mandates a cryptocurrency reserve or prohibits its sale for decades.
• Clerical Update: Adds a new section to the IRC table of contents.

Potential Impacts

• On Government Agencies: The Treasury and IRS gain new responsibilities for Bitcoin valuation, custody, and reporting, potentially increasing administrative costs initially but creating a self-appreciating asset reserve to strengthen national finances and reduce debt reliance. Could enhance economic resilience against inflation.
• On Citizens: Bitcoin holders benefit from easier tax payments without immediate capital gains taxes on the used portion, promoting use of digital currencies and financial access for unbanked individuals. However, it may complicate tax compliance for those tracking multiple Bitcoin lots.
• On International Relations: Positions the U.S. to compete with countries like China and Russia in acquiring Bitcoin reserves, potentially improving geopolitical leverage through a "neutral" asset resistant to sanctions. Could influence global cryptocurrency standards and U.S. dollar dominance in a digital economy.

Main Stakeholders Affected

• Taxpayers and Bitcoin Holders: Primary users who can pay taxes with Bitcoin, gaining tax advantages but needing to follow new reporting rules.
• U.S. Treasury and IRS: Responsible for implementation, valuation, custody, and oversight of the reserve.
• Financial Institutions: Regulated banks or entities acting as agents, handling Bitcoin transactions under strict compliance.
• U.S. Government Overall: Benefits from diversified reserves; Congress and future administrations affected by long-term holding mandates.
• Global Actors: Other nations and international markets, as U.S. adoption could accelerate worldwide Bitcoin use.

Notable Legal, Constitutional, or Political Implications

• Legal: Integrates cryptocurrency into federal tax law without classifying Bitcoin as legal tender, relying on Treasury rulemaking for details (e.g., valuations). The nonrecognition provision could face challenges if seen as preferential treatment for digital assets over others, but it aligns with existing IRC flexibilities. Third-party agents must adhere to anti-money laundering (Bank Secrecy Act) and sanctions (OFAC) rules, reducing illicit finance risks.
• Constitutional: No direct challenges noted; falls under Congress's taxing and spending powers (Article I, Section 8). Long-term reserve mandates limit executive discretion but are within legislative authority to direct fiscal policy.
• Political: Encourages cryptocurrency adoption, potentially polarizing debates on fiscal innovation versus traditional monetary policy. The 20-year hold could constrain future governments, raising questions about fiscal flexibility in economic crises. Findings emphasize national security and competitiveness, framing it as a strategic imperative rather than speculative.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Davidson, Warren [R-OH-8]

Recent Actions

• 2025-11-20: Referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-11-20: Referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-11-20: Introduced in House
• 2025-11-20: Introduced in House

Bill Versions

• Bitcoin for America Act — issued 2025-11-20 — PDF (9 pages)