A newly introduced bill in the U.S. Congress would allow Americans to pay taxes with Bitcoin without incurring capital gains tax. If enacted, the measure would mark a notable shift in how Bitcoin is treated in a tax-payment context, moving it closer to a functional currency rather than only an investment asset.
Tax use and custody reform at the center
According to Congressman Davidson, who discussed the proposal, the bill goes beyond tax payments. It would also centralize custody of seized Bitcoin under the U.S. Treasury. The proposal is intended to address operational problems across federal agencies, including the risk of lost private keys when digital assets are held in a fragmented manner.
In policy terms, the legislation aims to treat Bitcoin as currency for tax payments and to codify an executive order covering the handling of seized digital assets. If approved, the bill could affect both the practical use of Bitcoin in the tax system and the broader structure of federal digital-asset management in the United States.
Brazil weighs major Bitcoin reserve plan
In a separate but related development, Brazil's Congress is also considering a Bitcoin bill. The proposal would gradually acquire 1 million BTC over five years under a program called RESbit, with the goal of expanding the country's strategic Bitcoin reserve. If completed as proposed, the plan could make Brazil one of the world's largest Bitcoin holders.
For now, both the U.S. tax bill and Brazil's reserve proposal remain pending and have not yet been approved. Market participants are likely to watch whether these legislative efforts gain traction, as they could signal how governments are increasingly exploring Bitcoin in fiscal policy and sovereign reserve strategies.