With new bills, legislation, and regulations, America’s crypto ecosystem has seen a massive expansion since the beginning of 2025. Remember the Strategic Bitcoin Reserve, the GENIUS Act, and the CLARITY Act that reshaped the blockchain landscape in the past six months? Now, adding to this wave, Congressman Warren Davidson has introduced the Bitcoin for America Act — a bill that lets citizens pay federal tax in BTC.
Warren Davidson’s Bitcoin for America Act
“Bitcoin offers stability and protection against inflation,” stated Rep. Davidson, adding, “the U.S. must act swiftly to avoid falling behind other economies,” citing the Bitcoin for America Act. At its core, this act helps taxpayers pay in Bitcoin, and all the payments will head to the Strategic Bitcoin Reserve, another main motive of the act.
The bill boosts financial stability of the US
A stable financial status means a country can grow healthier in all aspects. With the Bitcoin for America Act and the related Bitcoin Strategic Reserve, the US may be able to decrease its national debt.
But how is this possible? If the US collects Bitcoin tax payments in a reserve and BTC’s price appreciates over time, the government could use the profits earned to pay down national debt. Overall, this process can help stabilize the country’s rampaging debt problem.
Crypto supporters have shown their enthusiasm towards the bill, claiming it would rejuvenate the financial system of the country.
Expert remarks on the Bitcoin for America Act
Similar to how the US built large gold reserves in the past, the new bill positions the country to accumulate the leading digital store of value. It adds credibility to Bitcoin, cryptocurrencies, and blockchain technology at an institutional level, said Wesley Crook, CEO of FP Block, a Web 3 development firm, to AltCoin Desk.
“Near-term impact is minimal and carries no material risk: it adds Bitcoin as a payment option without fiscal cost”, added Wesley Crook
As a hedge against inflation, using Bitcoin for tax payments would attract more Bitcoin-related businesses to come to the US and earn profits. Besides, the Bitcoin for America Act would diversify the strategic reserve, allowing Bitcoin to be an asset among gold, treasury bonds, and fiat dollars.
The CEO stated that if Bitcoin continues to appreciate, the reserve would provide a hedge against inflation and currency debasement, improve the U.S. balance sheet, and support the dollar’s role in global finance as other nations and institutions allocate to Bitcoin.
Risks associated with the Bitcoin for America Act
What if the price of Bitcoin drastically goes down? This situation would create a loss for the Strategic Bitcoin Reserve. Sudden price drops can weaken the health of the Reserve. Also, if the government integrates BTC deeply into the finance, a price crash can impact public finances, and private companies relying on the top coin would also fall.
The Bitcoin for America Act bill was introduced with optimistic goals to allow tax payments in Bitcoin and strengthen the financial system of the US. However, volatility speaks volumes about any cryptocurrency, including Bitcoin.
In this case, a deep price fall can impact the reserve system and other financial institutions. Although this impact may be temporary, a good price surge can indeed revitalize the strategic reserve and hence the financial status.
