Congressman Davidson said the bill would let Americans pay taxes in Bitcoin and remove capital gains tax on those payments.
Davidson said the plan puts all seized Bitcoin under Treasury custody, after agencies reportedly lost private keys across departments.
Brazil introduced a RESbit bill proposing gradual acquisition of 1 million BTC over five years, expanding an earlier reserve draft.
A new strategic Bitcoin reserve bill has been introduced in Congress, proposing that taxes could be paid in Bitcoin without capital gains tax. Congressman Davidson discussed the proposal during an interview, describing it as legislation meant to support a government-held Bitcoin reserve. He said the bill would also codify an executive order tied to how the U.S. handles seized digital assets.
However, Davidson said the main issue began with custody problems inside the federal government. He explained that different agencies held seized digital assets without a single custodian. As a result, he said agencies sometimes lost track of private keys, which he compared to losing physical cash.
Davidson Describes Treasury Custody Plan for Seized Bitcoin
Davidson said the president created a strategic Bitcoin reserve partly because the government lacked an organized custody system. He explained that agencies holding digital assets did not have a unified way to store them. Notably, he said losing private keys meant losing access to the assets entirely.
He compared the reserve structure to “Fort Knox for crypto,” with Treasury acting as the main custodian. Davidson also said the plan would centralize custody for Bitcoin and other digital assets. He added that this structure aimed to stop agencies from losing track of holdings.
Bill Would Treat Bitcoin as Currency for Paying Taxes
Davidson said lawmakers want to expand how the reserve can be funded without increasing the deficit. He explained that the legislation would allow taxpayers to contribute by paying taxes in Bitcoin. As he put it, Bitcoin would function as currency in that setting.
Notably, Davidson said the proposal would remove capital gains tax when Bitcoin is used to pay taxes. He also said the legislation would formally codify the existing executive order. He described the plan as a “common sense way” to handle custody rules.
Brazil Draft Expands RESbit Plan to Acquire 1 Million BTC
Meanwhile, a separate Bitcoin reserve proposal has surfaced in Brazil’s Congress. The bill calls for a planned and gradual acquisition of Bitcoin over five years. It targets accumulating at least 1,000,000 BTC under a reserve program called RESbit.
The proposal replaces and expands an earlier draft focused on a national strategic Bitcoin reserve. However, the bill still requires approval before it can move forward. If approved, the plan would place Brazil among the countries holding the largest Bitcoin reserves.
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