TLDR:
- U.S. taxpayers may soon pay federal taxes directly in Bitcoin, no capital gains tax applied.
- Bitcoin payments will flow into a national strategic reserve, creating consistent demand.
- IRS could become the largest Bitcoin buyer, driving systematic, sovereign-scale accumulation.
- Even 5–10% adoption could inject hundreds of billions of dollars into Bitcoin annually.
Bitcoin is poised for a historic shift after the U.S. Congress introduced the Bitcoin for America Act.
The proposed legislation allows Americans to pay federal taxes using Bitcoin, with all payments directed to a national strategic reserve. Notably, these transactions would incur zero capital gains tax, creating a unique demand mechanism for the cryptocurrency.
The move could establish Bitcoin as a major component in U.S. federal financial operations. Analysts note that even a modest adoption rate by taxpayers could lead to unprecedented Bitcoin accumulation.
This development marks a clear step toward integrating Bitcoin into national economic structures.
Federal Tax Payments as a Bitcoin Demand Driver
The Bitcoin for America Act enables U.S. taxpayers to use Bitcoin to settle federal obligations directly.
According to Merlijn The Trader, the IRS currently collects $5.2 trillion annually. Even a five percent adoption would generate $260 billion in yearly Bitcoin inflows. If ten percent of taxpayers participate, the inflows could reach $520 billion.
BREAKING:
THE U.S. JUST UNLOCKED THE BIGGEST BITCOIN DEMAND DRIVER IN HISTORY.
Congress just introduced the Bitcoin for America Act.
Americans will be able to pay federal taxes in Bitcoin
with zero capital gains tax
and every BTC going straight into a national strategic… pic.twitter.com/iFa78CsEWJ— Merlijn The Trader (@MerlijnTrader) December 14, 2025
The legislation channels Bitcoin purchases into a national strategic reserve, creating a stable accumulation pattern.
This setup eliminates speculative elements that often drive extreme volatility. Bitcoin, in this framework, would serve as a government-controlled reserve asset.
Merlijn The Trader described the initiative as “monetary engineering at planetary scale,” emphasizing the systematic nature of taxpayer-driven accumulation. The act positions the IRS as potentially the world’s largest Bitcoin buyer, providing a consistent source of demand.
Bitcoin’s Role in Sovereign Financial Structures
The act transforms Bitcoin into state-backed collateral supporting the U.S. financial system.
By directing federal tax payments in Bitcoin to a national reserve, the government absorbs price volatility at a sovereign scale. This mechanism ensures gradual integration without destabilizing markets.
As adoption normalizes, Bitcoin’s scarcity intensifies, reinforcing its position in financial networks.
The reserve could operate without relying on ETFs, mining incentives, or speculative trading. Every Bitcoin added strengthens the structure of a national crypto reserve.
Merlijn The Trader’s tweet notes, “One law turns the IRS into the world’s largest Bitcoin buyer. Bitcoin won’t replace the dollar. It’s about to start backing it.”
This perspective underscores the strategic accumulation and the potential stabilization role of Bitcoin in federal finances. The legislation may redefine how digital assets interact with traditional state systems.
