Emily Walker
On Thursday, the Texas House of Representatives made a notable advancement by introducing legislation that aims to create a Bitcoin reserve as part of the state’s financial plan.
Spearheaded by Republican Representative Giovanni Capriglione, the bill proposes that Texas be allowed to accept taxes, fees, and donations in Bitcoin, with the intention of holding these assets for at least five years.
Proposal for a Texas Bitcoin Reserve
Capriglione shared details of the bill during an X Spaces event, highlighting the potential for a Bitcoin reserve to enhance Texas’s financial stability and cement its position as a pioneer in Bitcoin developments.
He stated, “Inflation is likely our biggest risk for investments. By establishing a strategic Bitcoin reserve, investing in Bitcoin could be advantageous for the state.”
Named “An Act Relating to the Establishment of a Bitcoin Reserve within the State Treasury of Texas and the Management of Cryptocurrencies by Governmental Entities,” the bill reflects a growing interest in Bitcoin among institutions.
Texas, which leads the nation in Bitcoin mining, is in a prime position to tap into the benefits of this industry. The proposal focuses on setting up a framework for accepting and managing cryptocurrency rather than directly purchasing Bitcoin initially.
Prospective Regulatory Developments
Capriglione aims to make the bill comprehensive and versatile, expressing, “My objective is to ensure this bill is as extensive and flexible as possible. This initial phase allows for some adaptability, but with legislative support, we can strengthen it further.”
The drive for a national BTC reserve has gained traction following the election of President-elect Donald Trump, who has shown support for crypto during his campaign.
In addition to his verbal endorsements, Trump has taken initial measures to boost the digital asset sector, such as appointing Paul Atkins to lead the US Securities and Exchange Commission (SEC), a significant change from the previous leadership’s approach.
Moreover, the newly elected President has appointed David Sacks, a crypto advocate, to the position of White House “Crypto Czar,” tasked with facilitating communication among Congress, regulators, and the White House regarding cryptocurrency matters.
This enthusiasm for a Bitcoin reserve in the US has contributed to a significant increase in Bitcoin prices, which have risen over 45% recently, as investors anticipate favorable regulatory changes.
Dennis Porter, CEO and co-founder of the Satoshi Action Fund, noted the importance of Texas’s initiative, stating:
The ‘Strategic Bitcoin Reserve’ legislation in Texas paves the way for Texans to contribute Bitcoin to the reserve. We have two Texans on our board and plan to be the first to donate Bitcoin to the Strategic Reserve in Texas, encouraging others to do so as well!”
Porter also mentioned that at least ten other states are considering similar measures, signaling a trend toward greater institutional acceptance of cryptocurrency.
At the time of this report, Bitcoin is trading at $99,850, showing a minor decrease of 1.1% within the last 24 hours.
Image credited to DALL-E, provided chart from TradingView.com