DeutschA Republican representative is introducing the next crypto bill in the USA. Yesterday, Warren Davidson introduced the Bitcoin for America Act, which is intended to massively increase the scope of the state’s Bitcoin reserve. He provides incentives for US citizens to use their BTC to pay their taxes.
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USA: Bitcoin Reserve Set to Grow Massively Thanks to New Law
The US government’s Bitcoin reserve is set to grow massively thanks to a new law. Warren Davidson, a representative in the House of Representatives, recently introduced a bill with the Bitcoin for America Act, which provides an incentive for residents of the country to pay taxes with BTC. The funds collected in this way are then to be invested by the state.
“I am introducing the “Bitcoin for America Act” to strengthen the country’s financial resilience in the long term and bring the USA to the forefront of the global crypto industry,” Davidson announced yesterday via X.
“This is an important step forward to promote the innovation that millions of Americans use daily,” he continued, referring to Bitcoin.
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The politician explained to Fox News that the Bitcoin for America Act is the logical conclusion to a decree by US President Donald Trump, which he had already signed in March.
Through his decree, Trump initiated the creation of a US Bitcoin reserve. This holds around 200,000 BTC – funds that originate from criminal cases and were seized by authorities.
However, the cryptocurrency portfolio of the United States of America plays a special role, as there has been no concrete plan to invest new funds so far. Trump stated that the expansion should occur in a “cost-neutral manner”. However, Trump did not disclose how this would be possible.
Davidson now provides a concept that fulfills Trump’s wish. Volunteers could pay their taxes with Bitcoin and thus invest in the Bitcoin reserve. Government institutions would then not need to make their own purchases.
Therefore, Capital Gains Tax on Bitcoin in the USA could be Eliminated.
Davidson’s bill provides an interesting incentive for crypto investors in the USA to pay their taxes with BTC and thus voluntarily contribute to the Bitcoin reserve.
If the Bitcoin for America Act comes into effect, the capital gains tax on Bitcoin will be completely eliminated. Achieved price gains can thus be realized completely tax-free. The coins then transferred to the authorities are subsequently to be held by the new owner – the US federal government – for a long time.
Instead of further accelerating the state’s aggressive spending, the government would then have an incentive to hold as many funds as possible over a long period – with the expectation that the invested Bitcoin will record further price gains.
This creates incentives for both sides to bet on Bitcoin instead of the US dollar. The X project Do They Support It classifies Davidson’s proposal as very crypto-friendly.
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The representative’s bill could well receive the necessary majority in the US Congress. Davidson is a member of the Republican Party, which currently holds the majority of representatives in both the House of Representatives and the Senate.
In recent months, the federal parliament dealt with the first specific crypto laws. With the GENIUS Act, the first law of this kind has already been passed. The CLARITY Act and Anti-CBDC Surveillance State Act drafts are in progress.
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