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Hassan Shittu
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Hassan Shittu
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Texas Rep Giovanni Capriglione Introduces Bill to Establish Bitcoin Strategic Reserve. The bill aims to establish a strategic Bitcoin reserve in the state of Texas, mirroring efforts on the national level in the United States.
The new bill introduced in the Texas House of Representatives on Thursday seeks to establish a strategic bitcoin reserve, potentially positioning the state as a leader in cryptocurrency innovation.
Bitcoin Taxes and Donations? Texas Proposes a Bold Plan to Build a Crypto Reserve
Republican State Representative Giovanni Capriglione announced the proposed legislation during an X Spaces event on Thursday.
The bill outlines a plan for Texas to build its bitcoin reserve by accepting taxes, fees, and donations in bitcoin, which would be held for at least five years.
Capriglione explained that the reserve aims to bolster the state’s fiscal stability while showcasing its leadership in bitcoin adoption.
Capriglione emphasized the importance of combating inflation, stating that a strategic bitcoin reserve represents a “win-win” investment for the state.
He further elaborated that the bill, titled “An act relating to the establishment of a bitcoin reserve within the state treasury of Texas and the management of cryptocurrencies by governmental entities,” aims to introduce a flexible framework for managing cryptocurrency holdings.
Texas, home to the largest concentration of bitcoin miners in the U.S., could see some miners paying taxes in bitcoin under the proposed legislation.
However, the initial bill does not include a strategy for direct Bitcoin purchases by the state.
Capriglione expressed his intent to expand the bill’s scope, aiming for broader support from legislators.
Bitcoin Boom: States Lead the Charge as Federal Crypto Policies Divide Opinions
The idea of a strategic Bitcoin reserve aligns with broader discussions at the national level.
President-elect Donald Trump has previously indicated support for a national Bitcoin reserve, which has fueled market speculation.
At the Bitcoin 2024 conference in July, Donald Trump announced that, if elected, he would prevent the U.S. government from selling Bitcoin seized in criminal cases.
Following his presidential election victory on Nov. 5, Wyoming Senator Cynthia Lummis, a Republican and vocal crypto advocate, revealed plans to propose legislation for the U.S. government to purchase 1 million BTC and hold it for at least 20 years.
However, not everyone supports the idea. Former U.S. Treasury Secretary Lawrence Summers criticized the plan on Dec. 5, calling it “crazy” and suggesting it was an attempt to appease campaign donors.
Other former officials have voiced similar doubts.
Bitcoin prices have surged by over 45% as investors anticipate potential policy shifts favoring cryptocurrency.
Despite the enthusiasm, analysts remain skeptical about the U.S. establishing a Bitcoin reserve in the near term.
States across the U.S. are taking the lead in exploring Bitcoin-related legislation.
Pennsylvania recently introduced its own strategic bitcoin reserve bill, and several other states, including Oklahoma, Louisiana, Montana, and Arkansas, have passed laws protecting cryptocurrency mining and self-custody rights.
Porter, an advisor on Capriglione’s bill, noted that as many as 10 states and four countries are considering similar legislation.
