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- On December 12, Texas Representative Giovanni Capriglione introduced a bill aimed at establishing a Strategic Bitcoin Reserve, which could potentially position the state as a leader in cryptocurrency innovation in the US.
- Giovanni filed the Texas House Bill 1598 during an X space event hosted by Dennis Porter, founder of the non-profit advocacy group Satoshi Action Fund (SAF).
Recently, Texas legislators announced a significant proposal to establish a state-managed Bitcoin reserve, signifying a proactive approach to exploring the potential of cryptocurrency within the financial sector. This legislative initiative was presented on December 13 by Republican Representative Giovanni Capriglione during an event on X space coordinated by Dennis Porter.
Lee Bratcher, the President of the Texas Blockchain Council, played a key role in drafting the bill and believes that backing Bitcoin and blockchain initiatives can create job opportunities in Texas’s burgeoning technology sectors.
The proposed legislation is officially 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.” At the event, Giovanni stated that the bill would permit the state to accept taxes, fees, and donations in Bitcoin. The proposal further suggests that these digital assets be held for a minimum duration of five years before being transferred, sold, or converted to another cryptocurrency.
Notably, the bill does not include provisions that would allow the Texas government to directly purchase Bitcoin. Instead, it aims to build the reserve through voluntary contributions and payments made in Bitcoin. The comptroller shall prohibit transactions involving foreign countries, entities, individuals outside of Texas, or individuals known to engage in illegal activities to promote security.
Representative Capriglione addressed the current economic climate, stating, “Inflation remains a significant challenge to maintaining the value of long-term investments. This initiative offers an opportunity to explore Bitcoin as a potential safeguard for the state’s financial stability.” His comments underscore the motivation behind this initiative as the state considers ways to adapt to economic pressures.
State Legislatures Embrace Bitcoin for Economic Resilience
Dennis Porter emphasized that the Texas initiative signifies a broader trend emerging across U.S. states. He referenced legislative progress in states like Oklahoma and Louisiana, which are concentrating on safeguarding mining and self-custody rights.
The concept of a strategic Bitcoin reserve resonates with ongoing national discussions. As we reported, President-elect Donald Trump has expressed support for establishing a national Bitcoin reserve. During the Bitcoin 2024 conference in July, Trump announced that, if elected, he would implement measures to prevent the U.S. government from liquidating Bitcoin seized in criminal cases.
In another development, a Republican lawmaker in Pennsylvania proposed allocating Bitcoin as part of the state’s reserves, making Pennsylvania the first state in the country to do so. This initiative aims to designate up to 10% of Pennsylvania’s $7 billion Treasury funds to Bitcoin.
Furthermore, in Brazil, lawmaker Eros Biondini introduced legislation to create a Bitcoin Sovereign Strategic Reserve (RESBit), suggesting an allocation of up to $18.6 billion, equivalent to 5% of the nation’s international reserves. At the time of writing, Bitcoin was trading at $99,722, setting its sights on its all-time high of $103,647, which reached December 5, 2024. Over the past 24 hours, the cryptocurrency experienced a decline of 0.84%, and it has fallen 1.88% over the past week.
