Bitcoin News Today: U.S. Proposes Bitcoin Tax Payments to Lead Global Digital Economy

A newly introduced bill in the U.S. House of Representatives, the "Bitcoin for America Act," would allow Americans to pay federal taxes in Bitcoin and direct the collected cryptocurrency into a Strategic Bitcoin Reserve. The legislation, unveiled by Rep. Warren Davidson (R-OH) on November 16, 2025, aims to modernize the nation's financial infrastructure by embracing digital assets while positioning the U.S. as a leader in the global digital economy according to Davidson's statement.

The bill argues that Bitcoin's fixed supply of 21 million coins makes it a superior long-term store of value compared to inflation-eroded fiat currencies. By enabling tax payments in BTC, the measure seeks to diversify the U.S. asset portfolio and create a resilient financial foundation. "This bill will give the American people more choice in paying their taxes and strengthen our government's financial stability," Davidson stated, emphasizing Bitcoin's appreciation over time.

The proposal aligns with growing institutional interest in Bitcoin, exemplified by Michael Saylor's holding company, Strategy.

Over the week of November 10-16, Strategy acquired 8,178 BTC for $835.6 million at an average price of $102,171 per bitcoin, bringing its total holdings to 649,870 BTC valued at $48.37 billion. The firm's aggressive accumulation strategy, funded through equity sales and debt issuance, underscores Bitcoin's growing acceptance as a corporate reserve asset. Strategy's 27.8% yield on Bitcoin holdings in 2025 highlights the potential for long-term gains, a point the bill's proponents cite as a rationale for national adoption.

The Bitcoin for America Act also responds to global competition. Nations like China and Russia are reportedly accumulating Bitcoin, prompting U.S. lawmakers to act to avoid falling behind. Davidson's bill represents a middle ground between earlier proposals, such as a $80 billion Bitcoin purchase plan by Sen. Cynthia Lummis (R-WY) and budget-neutral accumulation strategies by Rep. Byron Donalds (R-FL). By allowing voluntary BTC tax contributions, the measure aims to create a "democratic, market-driven" reserve.

The Bitcoin Policy Institute, which endorsed the bill, developed a forecasting model suggesting that if 1% of federal taxes were paid in Bitcoin from 2025 to 2030, the reserve could amass 2.6 million BTC-worth $230 billion at current prices. However, the bill faces challenges, including regulatory hurdles and Bitcoin's recent price volatility. The cryptocurrency has dropped nearly 30% from its August all-time high of $126,000, trading at $88,769 as of late November.

Critics may question the practicality of tax payments in an asset with extreme price swings, but supporters argue the bill's voluntary nature and focus on long-term appreciation mitigate short-term risks. As the debate unfolds, the measure reflects a broader shift toward integrating digital assets into national policy-a move that could redefine U.S. economic strategy in the digital age.