,i #aaith ,,congress #ast ,session ,h4 ,r4 #fahj ,,in ,,the ,,house ,,of ,,representatives ,november #bj1 #bjbe,mr4 ,davidson introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,financial ,services1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to allow ,federal taxes to be paid in ,bitcoin1 and for other purposes4 #a4 ,short title2 findings 7a7 ,short title ,this ,act may be cited as the ,bitcoin for ,america ,act4 7b7 ,findings ,congress finds the following3 7#a7 ,bitcoin operates on a decentralized1 open-source protocol with a fixed supply cap of #ba million coins1 creating inherent scarcity that contrasts sharply with fiat currencies2 historical data shows that ,bitcoin's value has increased dramatically since its #bjji inception1 exceeding the compound annual growth rates of traditional assets as a direct result of its deflationary design4 7#b7 ,by authorizing the acceptance of ,federal income taxes in ,bitcoin and the deposit of such funds into the ,strategic ,bitcoin ,reserve1 the ,united ,states will diversify its national wealth into a non-inflationary asset that serves as a long-term store of value1 thereby strengthening the ,nation's financial resilience against currency devaluation1 economic instability1 and global market volatility4 7#c7 ,other nations--including but not limited to ,china1 ,russia1 and emerging economies--actively acquire ,bitcoin to diversify their reserves and hedge against global financial instability1 such that the ,united ,states risks falling behind in this strategic race2 authorizing the incorporation of ,bitcoin into the ,united ,states ,strategic ,bitcoin ,reserve through tax revenues would bolster the ,nation's global competitiveness and safeguard national security by securing a stake in a decentralized1 geopolitically neutral asset immune to sanctions or external interference4 7#d7 ,bitcoin's permissionless nature enables individuals to participate in the global economy without reliance on traditional banking systems1 which often exclude underserved populations2 by enabling the payment of ,federal income taxes in ,bitcoin1 the ,united ,states promotes financial inclusion1 empowering citizens to engage in a modern1 decentralized economy4 7#e7 ,the value of the ,united ,states dollar is influenced by monetary policies1 including quantitative easing and interest rate adjustments1 which have historically led to inflation and reduced purchasing power2 ,bitcoin1 being free from such interventions1 offers a stable alternative for preserving wealth1 and the establishment and maintenance of the ,strategic ,bitcoin ,reserve would mitigate risks associated with fiat currency devaluation1 ensuring the ,united ,states maintains economic strength in an increasingly digital and decentralized global economy4 7#f7 ,bitcoin's value is expected to appreciate due to its scarcity and growing adoption1 such that revenues deposited into the ,united ,states ,bitcoin ,strategic ,reserve would increase in real value over time1 creating a self-sustaining fiscal mechanism that reduces reliance on debt-based financing1 enhances the ,nation's balance sheet1 and provides a robust financial foundation for future generations4 #b4 ,payment of ,federal taxes with bitcoin 7a7 ,in general ,subchapter ,b of chapter #fd of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #fcah4 ,payment with bitcoin 7a7 ,authority ,the ,secretary shall allow taxpayers to pay the taxes 7and any penalty1 addition to tax1 or other amount7 imposed under this title with ,bitcoin4 7b7 ,manner of payment ,for purposes of this title1 a payment of any amount with ,bitcoin shall be deemed made-- 7#a7 if the taxpayer irrevocably transfers ,bitcoin-- 7,a7 to a ,bitcoin network address designated by the ,secretary1 or 7,b7 to an address or account of an entity designated by the ,secretary to act as a financial agent under subsection 7e71 in accordance with procedures prescribed by the ,secretary1 and 7#b7 at the time that the transfer described in paragraph 7#a7 has obtained the level of network confirmations specified by the ,secretary4 ,the ,secretary may prescribe rules regarding required network confirmations and proof of transfer4 7c7 ,valuation ,the amount of any payment made with ,bitcoin shall be the fair market value of the ,bitcoin at the time the payment is deemed made under subsection 7b74 ,the ,secretary shall prescribe regulations that establish and publish one or more reference rates for determining such fair market value1 similar to the foreign currency exchange rates published for ,federal tax purposes4 7d7 ,nonrecognition ,no gain or loss shall be recognized by a taxpayer on the transfer of ,bitcoin to the ,united ,states 7including to a financial agent of the ,united ,states acting pursuant to subsection 7e77 in satisfaction of any liability imposed by this title4 ,a transfer described in the preceding sentence shall not be treated as a sale or exchange for purposes of section #ajja4 ,nonrecognition under this subsection shall apply only to the portion of any transfer not exceeding the amount of the liability satisfied thereby1 determined using the fair market value under subsection 7c74 ,any amount transferred in excess of such liability shall be treated as a disposition for purposes of section #ajja4 7e7 ,third-,party financial agents ,the ,secretary may enter into contracts or other arrangements with regulated financial institutions chartered or licensed under ,united ,states law and subject to the ,bank ,secrecy ,act and applicable ,office of ,foreign ,assets ,control 7,,ofac7 requirements to act as the ,secretary's financial agents to receive custody1 convert 7if and as directed by the ,secretary71 and remit ,bitcoin tendered under this section4 ,agents shall comply with applicable ,treasury1 ,internal ,revenue ,service1 and financial regulatory standards4 7f7 ,information reporting and guidance ,the ,secretary may prescribe such regulations or other guidance as are necessary or appropriate to carry out the purposes of this section1 including rules for documentation1 receipts1 timing and source of valuation1 acceptable exchanges and price feeds1 required network confirmations1 and information reporting by payors and agents4 7g7 ,basis and lot selection 7#a7 ,in general ,in the case of a taxpayer that holds more than one lot of ,bitcoin1 the taxpayer may designate which lot or lots of ,bitcoin are treated as transferred in a transaction described in subsection 7d71 in such form and manner and at such time as the ,secretary may prescribe4 7#b7 ,permissible methods ,the ,secretary shall prescribe regulations that allow taxpayers to determine which lot or lots are treated as transferred using one or more permissible methods including specific identification1 first-in first-out1 last-in first-out1 highest cost in first-out1 or other methods similar to those allowed under section #ajab and the regulations thereunder4 ,the regulations shall provide rules for elections1 changes in method1 and default ordering when a taxpayer does not make a designation4 7#c7 ,basis ,the adjusted basis of the lots of ,bitcoin treated as transferred under this section shall be removed from the taxpayer's aggregate basis in ,bitcoin held1 and the basis and holding period of any remaining ,bitcoin shall be determined without regard to any gain or loss not recognized under subsection 7d74 4 7b7 ,clerical amendment ,the table of sections for subchapter ,b of chapter #fd of such ,code is amended by adding at the end the following new item3 ,sec4 #fcah4 ,payment with ,bitcoin4 4 7c7 ,effective date ,the amendments made by this section shall apply to payments made after the date of the enactment of this ,act4 #c4 ,strategic bitcoin reserve and custody authority 7a7 ,establishment ,any ,bitcoin received by the ,secretary as a payment under the ,internal ,revenue ,code of #aihf shall be deposited by the ,secretary in a ,strategic ,bitcoin ,reserve 7referred to in this ,act as the ,reserve74 7b7 ,custody and management ,the ,secretary is authorized to-- 7#a7 accept1 hold1 and aggregate ,bitcoin received under ,federal law or acquired through lawful means on behalf of the ,united ,states1 7#b7 establish such custody1 storage1 and security arrangements for the ,reserve as the ,secretary determines appropriate1 including cold storage1 multi-signature arrangements1 and geographically distributed storage facilities1 and 7#c7 manage such holdings with discretion1 subject to applicable law1 to ensure long-term safekeeping and security4 7c7 ,long-,term retention ,bitcoin deposited in the ,reserve shall be held for the long-term benefit of the ,united ,states4 ,the ,secretary may not sell1 swap1 or otherwise dispose of ,bitcoin held in the ,reserve except-- 7#a7 in accordance with a schedule providing that no more than one-twentieth of the total holdings may be disposed of in any one-year period1 and 7#b7 only after the #bj-year period beginning on the date such ,bitcoin was received or acquired by the ,united ,states4 7d7 ,reporting and oversight ,the ,secretary shall publish an annual public report describing-- 7#a7 the total ,bitcoin holdings of the ,united ,states1 and 7#b7 the custody and security arrangements of the ,reserve4 7e7 ,secretary ,for purposes of this section1 the term ,secretary means the ,secretary of the ,treasury or the ,secretary's delegate4