Bitcoin Updates: U.S. Bitcoin Reserve Seeks to Offset $38 Trillion Debt and Rising Inflation

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Bitcoin Updates: U.S. Bitcoin Reserve Seeks to Offset $38 Trillion Debt and Rising Inflation

Bitget-RWA2025/11/21 20:18

By:Bitget-RWA

- U.S. House introduces Bitcoin for America Act 2025, enabling tax payments in Bitcoin without capital gains liability. - Proceeds would fund a Strategic Bitcoin Reserve, holding assets for 20 years to hedge inflation and $38T national debt. - BPI projects 4. 3M BTC accumulation by 2045 at $3.25M/coin, creating $13.8T reserve via 1% tax participation. - Critics warn Bitcoin's volatility could disrupt federal budgeting and require system overhauls for transaction compliance.

The U.S. House of Representatives has made a landmark move to incorporate cryptocurrency into the federal financial framework, as Rep. Warren Davidson (R-Ohio) has put forward the

Bitcoin

for America Act of 2025. Supported by the Bitcoin Policy Institute (BPI), this bill would permit Americans to use Bitcoin for federal tax payments without incurring capital gains tax—a first for the nation—and

direct the funds into a Strategic Bitcoin Reserve

. The proposal seeks to update the country’s financial systems and

establish the U.S. as a frontrunner

in digital asset advancement.

If enacted, the law would let taxpayers send Bitcoin straight to the Treasury or designated financial agents to fulfill tax obligations. The Bitcoin’s value would be set at the moment of transfer, with no capital gains applied, mirroring how foreign currency payments are handled

as reported by Bitcoin Magazine

. The Strategic Bitcoin Reserve, which was created by executive order earlier this year, would retain the received Bitcoin for a minimum of 20 years, with only limited withdrawals allowed after that period

according to Cryptoslate

. Advocates believe this would provide a long-term appreciating asset to help offset inflation’s impact on the U.S. dollar.

Bitcoin Updates: U.S. Bitcoin Reserve Seeks to Offset $38 Trillion Debt and Rising Inflation image 0

Davidson, a prominent supporter of Bitcoin, highlighted the act’s potential to reinforce the country’s financial base. "

By letting taxpayers settle federal taxes with Bitcoin and placing those funds in the Strategic Bitcoin Reserve

, the nation gains a tangible asset that could appreciate over time," he said. The bill also proposes strong security protocols for the reserve, including cold storage and multi-signature wallets

as detailed in Bitcoin Magazine

The Bitcoin Policy Institute, a nonpartisan research group, has created a proprietary model forecasting the act’s economic impact. Should 1% of federal tax payments be made in Bitcoin over the next 20 years, the reserve could amass as many as 4.3 million coins, with a projected end value of $13.8 trillion if each Bitcoin reaches $3.25 million

according to Cryptoslate

. BPI claims this would serve as a safeguard against the U.S.’s $38 trillion debt and

lessen dependence on conventional debt instruments

Opponents, however, point to the risks associated with Bitcoin’s price swings. While the bill assumes steady adoption and price growth, market volatility could make revenue projections challenging and add unpredictability to federal finances

according to Cryptoslate

. Furthermore, the Treasury would need to revamp its infrastructure to process time-stamped price settlements, manage refunds, and screen transactions for sanctions compliance

as reported by Cryptoslate

This legislation reflects a wider international movement, as countries like China and Russia are reportedly acquiring Bitcoin to diversify their reserves

according to Bitcoin Magazine

. By making participation optional, the U.S. seeks to create a more inclusive approach to Bitcoin accumulation, with BPI’s Conner Brown describing it as "

a genuinely democratic, market-based system

As of November 20, 2025,

Bitcoin was valued at $90,480

, a rise from a recent six-month low of $82,000 earlier that week. The Strategic Bitcoin Reserve, which currently holds 326,000 BTC from confiscated assets, is

expected to expand considerably

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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