Bitcoin Magazine

Congressman Warren Davidson Introduces Bitcoin For America Act, Proposes Federal Tax Free Payments in Bitcoin

Rep. Warren Davidson (R-OH) introduced today the Bitcoin For America Act in the U.S. House of Representatives, a landmark proposal designed to modernize the U.S. financial system and position the nation at the forefront of the global digital asset economy. 

The bill would allow Americans to pay federal taxes in bitcoin, with all proceeds deposited into a newly created Strategic Bitcoin Reserve (SBR).

“By allowing taxpayers to pay federal taxes in Bitcoin and directing those funds into a Strategic Bitcoin Reserve, the nation gains a tangible asset that appreciates over time—unlike the U.S. dollar, which is susceptible to inflation,” Davidson said. “This bill strengthens the nation’s financial foundation and positions the U.S. to lead—not follow—in the global race toward sound money and digital innovation.”

Under the proposed legislation, taxpayers would be able to transfer bitcoin (BTC) to the Treasury or to approved financial agents designated by the Secretary of the Treasury. 

The transferred BTC would count as full satisfaction of tax liabilities, with no capital gains recognized on the transaction. Fair market value at the time of transfer would determine the amount credited, similar to how foreign currency payments are handled today.

JUST IN: Congressman Warren Davidson introduces "#Bitcoin for America" bill to:

– Codify the Strategic Bitcoin Reserve Executive Order
– Eliminate capital gains tax when paying taxes with BTC pic.twitter.com/cFrqDEOfsE

— Bitcoin Magazine (@BitcoinMagazine) November 20, 2025

The bill also empowers the Treasury to establish robust custody measures for the Strategic Bitcoin Reserve. Provisions include cold storage, multi-signature wallets, and geographically distributed storage facilities. 

BTC deposited into the reserve would be held for at least 20 years, according to the bill, with limited scheduled dispositions allowed only after that period, ensuring the assets are preserved for future generations.

The bitcoin bill’s strategic implications

The legislation is intended to bolster national financial resilience by diversifying U.S. assets into a non-inflationary, appreciating store of value. 

The 21 million-coin supply of BTC creates inherent scarcity, offering a hedge against long-term currency devaluation. Davidson and supporters argued in a conversation with the Bitcoin Policy Institute (BPI) that this move reduces reliance on debt and strengthens the U.S. balance sheet.

Other major nations, like China and Russia are “already accumulating Bitcoin,” Davidson contends. By adding BTC into federal finances, Davidson believes the United States can maintain its competitive edge in the digital economy.

“Other nations are actively acquiring Bitcoin to diversify reserves and protect against global financial instability,” the bill notes. “The United States risks falling behind unless it takes a similar approach.”

In his conversation with BPI, Davidson discussed the long-term national benefits of the bill, noting that if the United States had been accumulating the crypto since 2012, it could help address the nation’s $38 trillion debt.

Davidson also stressed that the bill is opt-in and democratic, explaining, “every American can basically make the choice at the end of the year… to contribute to the reserve.” 

On the broader vision for sound money, he argued, “money is increasingly designed as a surveillance system… Bitcoin’s premise is kind of a return to sound money… separating money from the state.”

The act also highlights BTC’s decentralized, permissionless system as a tool to expand financial access. 

By enabling payment of federal taxes in BTC, the government can provide more Americans — including unbanked or underserved populations—an opportunity to participate in the digital economy.

At the time of writing, BTC’s price is $90,480. 

For context, back in March, the U.S. formally established a Strategic Bitcoin Reserve via an executive order signed by President Trump, making it the largest nation-state BTC holder with an estimated 200,000 BTC. 

Funded entirely through government-held assets seized in criminal and civil proceedings, the reserve cost taxpayers nothing. The order mandates a full audit of federal BTC holdings, prohibits any sales from the reserve, and allows budget-neutral acquisitions of additional BTC. 

This post Congressman Warren Davidson Introduces Bitcoin For America Act, Proposes Federal Tax Free Payments in Bitcoin first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Bitcoin Magazine

Japan Moves to Put Bitcoin Under Financial Product Rules, Slash Crypto Taxes to 20%

Japan’s Financial Services Agency (FSA) has reportedly finalized a sweeping plan to reclassify 105 cryptocurrencies — including bitcoin — as financial products under the Financial Instruments and Exchange Act, marking one of the country’s most significant regulatory shifts since the Mt. Gox era.

According to outlet Asahi, the move would subject these 105 assets to the same disclosure, reporting, and market surveillance standards used in Japan’s traditional securities markets. 

Exchanges listing the assets would have to publish detailed information on each token, including whether it has an issuer, the underlying blockchain architecture, and the level of price volatility.

The FSA also plans to introduce explicit insider trading rules for the crypto sector for the first time. Issuers, exchange executives, and related parties would be prohibited from trading tokens using non-public information — a category that includes planned listings, delistings, bankruptcies, or other material events.

These amendments are expected to be submitted during the 2026 ordinary Diet session.

Japan’s tax overhaul: From 55% to 20%

Alongside the reclassification, the FSA is pushing to slash the country’s notoriously high crypto tax rate. Currently, Japanese residents must declare crypto profits as “miscellaneous income,” which can push the effective tax burden to 55% for high-earning traders.

The agency wants to bring crypto taxation in line with equities — a flat 20% rate — for profits generated from the newly recognized financial products. The proposal will be reviewed during next fiscal year’s tax reform cycle and could take effect as early as 2026.

The lower rate would apply not only to individual traders but also to firms, including banks and insurers that sell crypto through securities subsidiaries.

The regulatory shift comes as Japan accelerates its Web3 ambitions. The FSA has recently reviewed rules that previously barred banks from holding volatile assets like bitcoin, opening the door for lenders to treat digital assets more like stocks or government bonds.

It is also considering allowing banks to operate crypto exchanges and custody services.

This follows rapid growth in domestic adoption in the country — more than 12 million crypto accounts were registered as of early 2025 — and a push for a regulated yen-stablecoin ecosystem. MUFG, SMBC, and Mizuho are already collaborating on yen-pegged tokens, while Japan’s first locally regulated stablecoin, JPYC, launched on October 27.

JUST IN: Japan’s FSA plans to classify #Bitcoin and crypto as financial products, lowering the tax on crypto gains from 55% to 20%.

Bullish pic.twitter.com/VSoBYAyEjS

— Bitcoin Magazine (@BitcoinMagazine) November 17, 2025

Major Japanese banks have already signaled their interest in expanding crypto services. Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp., and Mizuho Bank have collaborated to issue stablecoins pegged to both the Japanese yen and the U.S. dollar.

A great example of the country’s booming crypto market comes from Metaplanet. Metaplanet has acquired and held Bitcoin as a treasury reserve while launching Bitcoin-backed financial products to generate income in Japan’s low-yield market. 

The company raises capital through equity and preferred shares, similar to Strategy, to fund its Bitcoin purchases. 

This post Japan Moves to Put Bitcoin Under Financial Product Rules, Slash Crypto Taxes to 20% first appeared on Bitcoin Magazine and is written by Micah Zimmerman.