Texas Lawmaker Proposes Legislation to Create Strategic Bitcoin Reserve

Giovanni Capriglione, a Republican State Representative, has submitted a proposal to establish a strategic Bitcoin (BTC) reserve for the state of Texas.

The objective of the bill is to improve financial stability and reinforce Texas’s role as a leader in digital innovation.

Details of the Proposed Legislation

During a recent X Spaces event, Capriglione introduced the Texas Strategic Bitcoin Reserve Act (H.B. No. 1598). He outlined the benefits of Bitcoin’s decentralized structure, limited supply, and its potential as a strategic asset to bolster the state’s economic stability and resilience.

The representative believes this initiative can help mitigate inflation and serve as a safeguard against economic uncertainty. He characterized the reserve as a “win-win” investment that would encourage innovation and provide a solid framework for managing cryptocurrency assets.

The proposal recommends establishing a Bitcoin reserve within the Texas state treasury, treated as a distinct fund separate from the general revenue fund, overseen by the state comptroller. If enacted, it would permit residents to pay taxes, fees, and make donations using cryptocurrency, with holdings to be maintained for a minimum of five years.

This framework also allows residents to contribute Bitcoin to the reserve, promoting public involvement in the state’s financial innovation.

The bill requires a two-thirds majority approval in both legislative chambers to take effect immediately; otherwise, it will become effective on September 1, 2025. Furthermore, the Act is set to expire on September 1, 2035, unless further amended.

Texas Leading the Charge as States Adopt Bitcoin

Capriglione’s initiative reflects a growing trend across the U.S. toward Bitcoin adoption. A similar bill was recently introduced by Representative Mike Cabell in Pennsylvania, proposing that up to 10% of state funds could be allocated to the top digital asset.

In a memo dated November 12, Cabell pointed out Bitcoin’s potential as a hedge against inflation, particularly due to its increasing acceptance by financial institutions and governments.

“In recent years, numerous financial entities and sovereign nations have invested in Bitcoin as a protective measure against economic fluctuations,” he stated.

This legislative proposal follows Pennsylvania’s enactment of a “Bitcoin rights bill” and reflects a wider trend of legislative initiatives across the country. Other states like Oklahoma, Louisiana, Montana, and Arkansas have enacted laws to safeguard crypto mining and self-custody rights.

The movement is in line with the favorable view of virtual currency by President-elect Donald Trump. His campaign promise to create a Bitcoin reserve for the United States has been reiterated by Wyoming Senator Cynthia Lummis, who stated her aim to advocate for the passage of the BITCOIN Act (Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide) on November 6, aiming for the U.S. Treasury to acquire 1 million BTC over the next five years.