Texas Rep Giovanni Capriglione has introduced a bill in the Texas House of Representatives on Thursday. The aim of this bill is to establish a strategic Bitcoin reserve in the state of Texas, mirroring efforts seen on the national level within the United States. The proposal could potentially position Texas as a leader in cryptocurrency innovation.
Plan to Build Reserve Through Bitcoin Taxes and Donations
Outlining the Key Aspects of the Proposed Legislation
The bill lays out a plan for Texas to build its bitcoin reserve. It would do this by accepting taxes, fees, and donations in bitcoin, and these bitcoins would be held for at least five years. Capriglione explained that the reserve is meant to bolster the state’s fiscal stability while also showcasing Texas’s leadership in bitcoin adoption. He emphasized the importance of combating inflation, stating that a strategic bitcoin reserve represents a “win-win” investment for the state.
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, which is 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 has expressed his intent to expand the bill’s scope in order to gain broader support from legislators.
Strategic Bitcoin Reserve Idea in Broader Context
National and State-Level Discussions and Reactions
The idea of a strategic Bitcoin reserve aligns with broader discussions happening at the national level. President-elect Donald Trump has previously shown support for a national Bitcoin reserve, which has led to market speculation. At the Bitcoin 2024 conference in July, Trump announced that if elected, he would prevent the U.S. government from selling Bitcoin seized in criminal cases. After 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 is on board with these ideas. 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 also voiced similar doubts. Bitcoin prices have surged by over 45% as investors anticipate potential policy shifts that could favor cryptocurrency.
Despite the enthusiasm in some quarters, 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. An advisor on Capriglione’s bill, Porter, noted that as many as 10 states and four countries are considering similar legislation.
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