Texas Introduces Bill for Strategic Bitcoin Reserve

Introduction to the Texas Strategic Bitcoin Reserve Act

Texas State Representative Giovanni Capriglione has proposed a bill to establish a strategic Bitcoin reserve, aimed at positioning the state as a leader in digital asset innovation. The Texas Strategic Bitcoin Reserve Act seeks to create a dedicated fund within the state treasury to hold Bitcoin as a financial asset.

Key Provisions of the Bill

The proposed legislation defines critical terms related to the reserve, such as "Bitcoin," "cold storage," and "cryptocurrency." It highlights Bitcoin's decentralized nature and its potential as a hedge against inflation. The reserve would be managed by the state comptroller, responsible for the secure storage, management, and reporting of Bitcoin assets.

Management and Security Measures

The comptroller would have the authority to accept Bitcoin donations from Texas residents and governmental entities, fostering shared ownership and community investment. The bill mandates that Bitcoin held in the reserve must remain for at least five years before any transactions. To ensure transparency, the comptroller would develop management protocols, including regular audits and biennial reports detailing holdings, dollar value, account growth, transactions, security threats, and eligible conversions.

Recognition and Incentives

Donors may receive certificates of acknowledgment, and a recognition program could honor significant contributions. The comptroller has discretion over donor eligibility and the authority to return Bitcoin to ineligible donors.

Cryptocurrency Payments and Implementation

The bill allows for the acceptance of certain cryptocurrencies for state fees and taxes, requiring conversion to Bitcoin before deposit. It also empowers the comptroller to establish compensation rules for departments receiving Bitcoin. The Act would take immediate effect with a two-thirds majority vote or otherwise from September 1, 2025, expiring on September 1, 2035.