HR6180-119

1. Short title; findings This Act may be cited as the Bitcoin for America Act. Congress finds the following: Bitcoin operates on a decentralized, open-source protocol with a fixed supply cap of 21 million coins, creating inherent scarcity that contrasts sharply with fiat currencies; historical data shows that Bitcoin’s value has increased dramatically since its 2009 inception, exceeding the compound annual growth rates of traditional assets as a direct result of its deflationary design. By authorizing the acceptance of Federal income taxes in Bitcoin and the deposit of such funds into the Strategic Bitcoin Reserve, the United States will diversify its national wealth into a non-inflationary asset that serves as a long-term store of value, thereby strengthening the Nation’s financial resilience against currency devaluation, economic instability, and global market volatility. Other nations—including but not limited to China, Russia, and emerging economies—actively acquire Bitcoin to diversify their reserves and hedge against global financial instability, such that the United States risks falling behind in this strategic race; 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 decentralized, geopolitically neutral asset immune to sanctions or external interference. Bitcoin’s permissionless nature enables individuals to participate in the global economy without reliance on traditional banking systems, which often exclude underserved populations; by enabling the payment of Federal income taxes in Bitcoin, the United States promotes financial inclusion, empowering citizens to engage in a modern, decentralized economy. The value of the United States dollar is influenced by monetary policies, including quantitative easing and interest rate adjustments, which have historically led to inflation and reduced purchasing power; Bitcoin, being free from such interventions, offers a stable alternative for preserving wealth, and the establishment and maintenance of the Strategic Bitcoin Reserve would mitigate risks associated with fiat currency devaluation, ensuring the United States maintains economic strength in an increasingly digital and decentralized global economy. Bitcoin’s value is expected to appreciate due to its scarcity and growing adoption, such that revenues deposited into the United States Bitcoin Strategic Reserve would increase in real value over time, creating a self-sustaining fiscal mechanism that reduces reliance on debt-based financing, enhances the Nation’s balance sheet, and provides a robust financial foundation for future generations.

2. Payment of Federal taxes with bitcoin Subchapter B of chapter 64 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: The Secretary shall allow taxpayers to pay the taxes (and any penalty, addition to tax, or other amount) imposed under this title with Bitcoin. For purposes of this title, a payment of any amount with Bitcoin shall be deemed made— if the taxpayer irrevocably transfers Bitcoin— to a Bitcoin network address designated by the Secretary, or to an address or account of an entity designated by the Secretary to act as a financial agent under subsection (e), in accordance with procedures prescribed by the Secretary, and at the time that the transfer described in paragraph (1) has obtained the level of network confirmations specified by the Secretary. 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 (b). The Secretary shall prescribe regulations that establish and publish one or more reference rates for determining such fair market value, similar to the foreign currency exchange rates published for Federal tax purposes. No gain or loss shall be recognized by a taxpayer on the transfer of Bitcoin to the United States (including to a financial agent of the United States acting pursuant to subsection (e)) in satisfaction of any liability imposed by this title. A transfer described in the preceding sentence shall not be treated as a sale or exchange for purposes of section 1001. Nonrecognition under this subsection shall apply only to the portion of any transfer not exceeding the amount of the liability satisfied thereby, determined using the fair market value under subsection (c). Any amount transferred in excess of such liability shall be treated as a disposition for purposes of section 1001. 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 (OFAC) requirements to act as the Secretary’s financial agents to receive custody, convert (if and as directed by the Secretary), and remit Bitcoin tendered under this section. Agents shall comply with applicable Treasury, Internal Revenue Service, and financial regulatory standards. The Secretary may prescribe such regulations or other guidance as are necessary or appropriate to carry out the purposes of this section, including rules for documentation, receipts, timing and source of valuation, acceptable exchanges and price feeds, required network confirmations, and information reporting by payors and agents. In the case of a taxpayer that holds more than one lot of Bitcoin, the taxpayer may designate which lot or lots of Bitcoin are treated as transferred in a transaction described in subsection (d), in such form and manner and at such time as the Secretary may prescribe. 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 identification, first-in first-out, last-in first-out, highest cost in first-out, or other methods similar to those allowed under section 1012 and the regulations thereunder. The regulations shall provide rules for elections, changes in method, and default ordering when a taxpayer does not make a designation. 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 held, and the basis and holding period of any remaining Bitcoin shall be determined without regard to any gain or loss not recognized under subsection (d). The table of sections for subchapter B of chapter 64 of such Code is amended by adding at the end the following new item: The amendments made by this section shall apply to payments made after the date of the enactment of this Act. 6318.Payment with bitcoin(a)AuthorityThe Secretary shall allow taxpayers to pay the taxes (and any penalty, addition to tax, or other amount) imposed under this title with Bitcoin.(b)Manner of paymentFor purposes of this title, a payment of any amount with Bitcoin shall be deemed made—(1)if the taxpayer irrevocably transfers Bitcoin—(A)to a Bitcoin network address designated by the Secretary, or(B)to an address or account of an entity designated by the Secretary to act as a financial agent under subsection (e), in accordance with procedures prescribed by the Secretary, and(2)at the time that the transfer described in paragraph (1) has obtained the level of network confirmations specified by the Secretary.The Secretary may prescribe rules regarding required network confirmations and proof of transfer.(c)ValuationThe 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 (b). The Secretary shall prescribe regulations that establish and publish one or more reference rates for determining such fair market value, similar to the foreign currency exchange rates published for Federal tax purposes.(d)NonrecognitionNo gain or loss shall be recognized by a taxpayer on the transfer of Bitcoin to the United States (including to a financial agent of the United States acting pursuant to subsection (e)) in satisfaction of any liability imposed by this title. A transfer described in the preceding sentence shall not be treated as a sale or exchange for purposes of section 1001. Nonrecognition under this subsection shall apply only to the portion of any transfer not exceeding the amount of the liability satisfied thereby, determined using the fair market value under subsection (c). Any amount transferred in excess of such liability shall be treated as a disposition for purposes of section 1001. (e) 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 (OFAC) requirements to act as the Secretary’s financial agents to receive custody, convert (if and as directed by the Secretary), and remit Bitcoin tendered under this section. Agents shall comply with applicable Treasury, Internal Revenue Service, and financial regulatory standards. (f)Information reporting and guidanceThe Secretary may prescribe such regulations or other guidance as are necessary or appropriate to carry out the purposes of this section, including rules for documentation, receipts, timing and source of valuation, acceptable exchanges and price feeds, required network confirmations, and information reporting by payors and agents.(g)Basis and lot selection(1)In generalIn the case of a taxpayer that holds more than one lot of Bitcoin, the taxpayer may designate which lot or lots of Bitcoin are treated as transferred in a transaction described in subsection (d), in such form and manner and at such time as the Secretary may prescribe. (2) 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 identification, first-in first-out, last-in first-out, highest cost in first-out, or other methods similar to those allowed under section 1012 and the regulations thereunder. The regulations shall provide rules for elections, changes in method, and default ordering when a taxpayer does not make a designation. (3)BasisThe adjusted basis of the lots of Bitcoin treated as transferred under this section shall be removed from the taxpayer’s aggregate basis in Bitcoin held, and the basis and holding period of any remaining Bitcoin shall be determined without regard to any gain or loss not recognized under subsection (d).. Sec. 6318. Payment with Bitcoin..

6318. Payment with bitcoin The Secretary shall allow taxpayers to pay the taxes (and any penalty, addition to tax, or other amount) imposed under this title with Bitcoin. For purposes of this title, a payment of any amount with Bitcoin shall be deemed made— if the taxpayer irrevocably transfers Bitcoin— to a Bitcoin network address designated by the Secretary, or to an address or account of an entity designated by the Secretary to act as a financial agent under subsection (e), in accordance with procedures prescribed by the Secretary, and at the time that the transfer described in paragraph (1) has obtained the level of network confirmations specified by the Secretary. 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 (b). The Secretary shall prescribe regulations that establish and publish one or more reference rates for determining such fair market value, similar to the foreign currency exchange rates published for Federal tax purposes. No gain or loss shall be recognized by a taxpayer on the transfer of Bitcoin to the United States (including to a financial agent of the United States acting pursuant to subsection (e)) in satisfaction of any liability imposed by this title. A transfer described in the preceding sentence shall not be treated as a sale or exchange for purposes of section 1001. Nonrecognition under this subsection shall apply only to the portion of any transfer not exceeding the amount of the liability satisfied thereby, determined using the fair market value under subsection (c). Any amount transferred in excess of such liability shall be treated as a disposition for purposes of section 1001. 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 (OFAC) requirements to act as the Secretary’s financial agents to receive custody, convert (if and as directed by the Secretary), and remit Bitcoin tendered under this section. Agents shall comply with applicable Treasury, Internal Revenue Service, and financial regulatory standards. The Secretary may prescribe such regulations or other guidance as are necessary or appropriate to carry out the purposes of this section, including rules for documentation, receipts, timing and source of valuation, acceptable exchanges and price feeds, required network confirmations, and information reporting by payors and agents. In the case of a taxpayer that holds more than one lot of Bitcoin, the taxpayer may designate which lot or lots of Bitcoin are treated as transferred in a transaction described in subsection (d), in such form and manner and at such time as the Secretary may prescribe. 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 identification, first-in first-out, last-in first-out, highest cost in first-out, or other methods similar to those allowed under section 1012 and the regulations thereunder. The regulations shall provide rules for elections, changes in method, and default ordering when a taxpayer does not make a designation. 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 held, and the basis and holding period of any remaining Bitcoin shall be determined without regard to any gain or loss not recognized under subsection (d).

3. Strategic bitcoin reserve and custody authority Any Bitcoin received by the Secretary as a payment under the Internal Revenue Code of 1986 shall be deposited by the Secretary in a Strategic Bitcoin Reserve (referred to in this Act as the Reserve). The Secretary is authorized to— accept, hold, and aggregate Bitcoin received under Federal law or acquired through lawful means on behalf of the United States, establish such custody, storage, and security arrangements for the Reserve as the Secretary determines appropriate, including cold storage, multi-signature arrangements, and geographically distributed storage facilities, and manage such holdings with discretion, subject to applicable law, to ensure long-term safekeeping and security. Bitcoin deposited in the Reserve shall be held for the long-term benefit of the United States. The Secretary may not sell, swap, or otherwise dispose of Bitcoin held in the Reserve except— in accordance with a schedule providing that no more than one-twentieth of the total holdings may be disposed of in any one-year period, and only after the 20-year period beginning on the date such Bitcoin was received or acquired by the United States. The Secretary shall publish an annual public report describing— the total Bitcoin holdings of the United States, and the custody and security arrangements of the Reserve. For purposes of this section, the term Secretary means the Secretary of the Treasury or the Secretary’s delegate.