A US lawmaker introduced a bill allowing Americans to pay federal taxes in Bitcoin to fund the US strategic Bitcoin reserve. BTC used for taxes would not be subject to capital gains taxes. The proposal aims to grow a strategic BTC reserve without active purchases affecting BTC’s price.

President Trump’s executive order established a strategic BTC reserve, but future additions must be funded through budget-neutral strategies. The US government will not sell any acquired BTC from asset seizure. BTC’s price dropped 6% after the order, disappointing investors expecting recurring market buys to grow the reserve.

Journalist Lola Leetz criticized funding the BTC reserve through seized assets, calling it a perverse incentive for the government. Chief Investment Officer Matt Hougan viewed the executive order positively, stating it reduces the likelihood of a government BTC ban and encourages other countries to adopt BTC to stay competitive globally.

Read more at Cointelegraph: Congressman Warren Davidson Introduces the ‘Bitcoin for America’ Act