US Congressman Proposes Strategic Bitcoin Reserve and Zero Capital Gains Tax

A US congressman has introduced legislation that would create a strategic Bitcoin reserve funded by tax payments while letting Americans hand over Bitcoin to settle federal tax bills without triggering capital gains tax, pairing a national-reserve ambition with a direct incentive for holders to part with their coins.

The proposal, H.R. 6180, was introduced in the House on November 20, 2025 by Rep. Warren Davidson and referred to the Ways and Means and Financial Services committees. It remains a proposal rather than enacted law. For related coverage, see Philippine Bill Proposes 10,000 Bitcoin Reserve.

The reserve concept and the tax change are presented as two halves of the same bill. It would add Internal Revenue Code section 6318, directing the Treasury Secretary to let taxpayers satisfy federal taxes, penalties, and other amounts with Bitcoin, and requiring that Bitcoin to be deposited into a Strategic Bitcoin Reserve. For related coverage, see Congressman Sherman Criticizes GENIUS Act as Harmful to Families.

The tax angle rests on Section 6318(d), which states that no gain or loss shall be recognized when Bitcoin is transferred to the United States to satisfy a federal tax liability, and that the transfer is not treated as a sale or exchange for section 1001 purposes. That nonrecognition language is what the headline “no capital gains tax” refers to. This builds on an earlier effort, as another congressional push to allow Bitcoin tax payments showed.

Why a Bitcoin reserve and zero capital gains tax would matter for crypto

For retail holders, the nonrecognition rule would remove a friction point: paying taxes in Bitcoin would not itself create a taxable event. That is a change in treatment for users, though the mechanism is voluntary and its full scope is not detailed in the introduced text.

For the government, the design frames Bitcoin as an asset with national-level relevance. The bill says received Bitcoin may not be sold, swapped, or otherwise disposed of until 20 years after receipt, and even then no more than one-twentieth of total holdings may be disposed of in any one-year period.

The bill builds on existing policy. On March 6, 2025, the White House said President Trump signed an executive order establishing a Strategic Bitcoin Reserve capitalized with forfeited Treasury-held bitcoin, adding that the United States would not sell bitcoin deposited into that reserve. The White House also said premature sales had cost taxpayers over $17 billion, a figure it attributed to its own calculation.

Industry reaction has skewed supportive. The Bitcoin Policy Institute endorsed the measure, and Conner Brown said the bill “creates the first truly democratic, market-driven model for national Bitcoin accumulation” by letting Americans voluntarily contribute Bitcoin through their tax payments.

At the time of the research snapshot, Bitcoin traded near $65,016, up about 0.29% over 24 hours, offering market context for the asset the bill would route into a national reserve. The Fear & Greed Index sat at 30, signaling “Fear.”

What to watch next as the proposal enters the political spotlight

As introduced, the bill still needs formal legislative movement through the Ways and Means and Financial Services committees before it could become law. Its passage, timeline, and level of support are not established in the available evidence.

Davidson’s office argued other nations are already accumulating Bitcoin, according to the sponsor’s press release, a claim not independently substantiated here. The reserve idea echoes other state-level pushes, including a broader federal Bitcoin reserve target and international efforts such as a proposed 10,000 BTC reserve in the Philippines.

The clearest next signals will be committee action, additional sponsor statements, and any market response tied to the bill’s mechanics, particularly Section 6318(d)’s nonrecognition treatment and the 20-year custody rule.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.