A Texas legislator has introduced a groundbreaking bill to establish a Bitcoin reserve as part of the state’s treasury, signaling growing interest in cryptocurrency at the state level.
Proposed Bitcoin Reserve Funded by Donations
Representative Giovanni Capriglione filed the draft bill, tentatively titled the “Texas Strategic Bitcoin Reserve Act,” on December 12. The proposed legislation suggests that the Texas comptroller maintain Bitcoin as a reserve asset for at least five years. Unlike federal-level discussions about cryptocurrency reserves, this bill emphasizes voluntary donations from Texas residents, businesses, or government entities to fund the reserve.
Notably, the bill specifies that no taxpayer funds will be used to purchase Bitcoin, a move aimed at increasing its chances of passing. According to the Texas Blockchain Council, a prominent crypto advocacy group, the reserve would rely solely on contributions from individuals, companies, or state resources.
Key Details of the Draft Legislation
- Funding Method: Bitcoin donations from residents, businesses, and existing state resources.
- Duration: Bitcoin would be held as a reserve asset for a minimum of five years.
- Approval Threshold: The bill requires a two-thirds majority in both the Texas Senate and House to become law.
- Timeline: The Texas legislature will reconvene for its 89th regular session starting January 14, 2024.
Broader Trend: States Exploring Bitcoin Reserves
The Texas initiative reflects a growing trend of U.S. states considering Bitcoin reserves. After the 2024 elections, which saw Republicans secure the presidency and control of Congress, cryptocurrency has taken center stage in political discussions. President Donald Trump has previously proposed the idea of a national Bitcoin stockpile.
Similar efforts are underway in other states. For example, a Republican lawmaker in Pennsylvania recently introduced legislation to establish a Bitcoin reserve. The framework for Pennsylvania’s bill was reportedly inspired by the advocacy group Satoshi Action Fund, whose co-founder, Dennis Porter, noted similarities with the Texas proposal.
As the Texas legislature prepares to reconvene, the fate of the Bitcoin Reserve Act will depend on bipartisan support and approval from lawmakers. If passed, it could position Texas as a leader in state-level cryptocurrency adoption, further solidifying its reputation as a hub for blockchain innovation.
