Texas lawmaker introduces bill to establish strategic Bitcoin reserve

Republican state representative Giovanni Capriglione has officially filed to create a strategic Bitcoin (BTC) reserve for Texas.

According to him, the bill aims to improve fiscal stability while consolidating the state’s leadership in digital innovation.

The proposed legislation

Capriglione announced the proposed Texas Strategic Bitcoin Reserve Act (HB #1598) during an X Spaces event on Thursday, where he shared the document that highlighted BTC’s decentralized nature, finite supply and potential as a strategic asset to strengthen the financial stability and resilience of the state. .

The lawmaker believes the initiative will combat inflation and provide a hedge against economic volatility. He described the reserve as a “win-win” investment that would encourage innovation while providing a broad framework for managing cryptocurrency holdings.

The Act suggests the creation of a Bitcoin reserve within the Texas state treasury, managed as a special fund outside the general revenue fund under the supervision of state intervention. If approved, it will allow area residents to pay taxes and fees and make donations in cryptocurrency, with holdings held for at least five years.

The framework also allows residents to contribute Bitcoin to the reserve, emphasizing public participation in the state’s financial innovation.

A two-thirds majority in both legislative houses will allow the bill’s provisions to take effect immediately; otherwise, it will be applicable on September 1, 2025. Additionally, the law will expire on September 1, 2035, unless extended by future amendments.

Texas Leads As States Embrace Bitcoin Integration

Capriglione’s proposal is part of a growing movement in the United States to adopt Bitcoin. Representative Mike Cabell recently introduced a similar bill in Pennsylvania, which would allow up to 10% of the state’s funds to be invested in the largest digital asset.

In a November 12 note, Cabell highlighted BTC’s potential use as a hedge against inflation, citing its adoption by financial firms and governments.

“In recent years, many financial institutions and sovereign governments, including the United States, have invested in Bitcoin to protect their portfolios from economic volatility,” he said.

The lawmaker’s motion followed Pennsylvania’s passage of a “Bitcoin Bill of Rights” and reflects broader legislative efforts across the country. Other jurisdictions, including Oklahoma, Louisiana, Montana, and Arkansas, have passed laws protecting cryptomining and self-storage rights.

The push also aligns with President-elect Donald Trump’s favorable stance on the virtual currency. Wyoming Senator Cynthia Lummis recently reiterated her promise to establish a Bitcoin stock in the United States, made during the campaign while soliciting votes from the crypto community.

On November 6, he declared his intention to push for the passage of the Boosting Innovation, Technology and Competitiveness Act through the Optimized Domestic Investment (BITCOIN) Act, which would ensure that the US Treasury bought 1 million BTC for five years.

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