Texas House Proposes Bill to Create Strategic Bitcoin Reserve
Texas has introduced a bill to create a strategic bitcoin reserve, as reported by CNBC. Proposed by Republican State Representative Giovanni Capriglione, the bill would enable Texas to accept Bitcoin for taxes, fees, and donations. If enacted, this initiative could position Texas as a leader in cryptocurrency adoption and financial innovation.
The bill aims to stabilize Texas’ economy and address inflation concerns. Capriglione stated during an X Spaces event that “the biggest enemy of our investments is inflation” and views a strategic bitcoin reserve as beneficial for the state.
“Probably the biggest enemy of our investments is inflation. A strategic bitcoin reserve, investing in bitcoin, would be a win-win for the state.”
The proposal does not mandate Texas to purchase bitcoin directly; instead, bitcoins received through the program would be held for at least five years. Capriglione seeks broad support by incorporating flexibility into the legislation, indicating that amendments could strengthen the bill over time.
“This initial step is to allow some optionality and flexibility on it but if I am able to get support from other legislators, we will make it even stronger,” said Capriglione.
Texas Pushes Bitcoin for State Taxes
Texas is notable in the cryptocurrency sector, housing the largest concentration of Bitcoin miners in the US. As the second-largest economy in the country and eighth-largest globally, Capriglione’s vision includes encouraging miners and businesses to pay taxes in Bitcoin, potentially enhancing Texas’ financial and technological stature.
This proposal coincides with rising interest in a national strategic Bitcoin reserve. President-elect Donald Trump’s crypto-friendly campaign promises have generated excitement, leading to a 45% increase in bitcoin prices recently. However, there is skepticism regarding the US government's swift adoption of such a reserve.
Despite uncertainties, states like Texas are pursuing leadership in this area. Pennsylvania has proposed a similar reserve, while discussions are ongoing in ten states and four countries. Capriglione worked with Porter, an expert in bitcoin-related legislation, to draft the Texas bill.
Crypto-Friendly Policies Gain US Momentum
There is growing momentum for cryptocurrency-friendly legislation. In July, Trump pledged to preserve all government-held bitcoin as part of a strategic reserve, hinting at potential shifts in national policy. States such as Oklahoma, Louisiana, and Montana have enacted laws protecting cryptocurrency activities, including mining and peer-to-peer transactions.
While the establishment of a US bitcoin reserve remains uncertain, it has sparked global discussions. According to Porter, the concept may encourage other nations to pursue similar initiatives regardless of US actions. For Texas, the proposed Bitcoin reserve could signify a significant advance in financial innovation and reinforce its position in the digital economy.