Texas lawmakers have introduced a bill to establish a state-managed Bitcoin reserve, aiming to explore the potential role of crypto in public finance.

Filed on Dec. 13 by Republican Rep. Giovanni Capriglione, the legislation would allow the state to collect taxes, fees, and donations in Bitcoin, with the assets held for at least five years.

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,” the proposal does not include provisions for the state to make direct Bitcoin purchases.

Instead, it focuses on building a reserve through voluntary contributions and payments.

The proposal, announced during an X Spaces event, is designed to provide the state with an alternative financial tool while leveraging its existing Bitcoin infrastructure. It was developed with input from the Satoshi Action Fund, a nonprofit organization focused on crypto policy.

According to Capriglione:

“Inflation remains a significant challenge to maintaining the value of long-term investments. This initiative offers an opportunity to explore Bitcoin as a potential safeguard for the state’s financial stability.”

Texas’ role in crypto

Texas, the second-largest economy in the United States, has the highest concentration of Bitcoin miners in the country, providing a unique opportunity to integrate crypto into state operations.

Supporters of the bill suggest that accepting Bitcoin payments from these entities could further enhance Texas’ role as a leader in digital innovation. Capriglione said the bill’s goal is to provide “flexibility while encouraging broader adoption.”

He added:

“The proposal is a starting point, with room for further development as it gains legislative support.”

The bill aligns with growing interest at the national level in incorporating Bitcoin into government policy. President-elect Donald Trump’s campaign included a proposal for a federal Bitcoin reserve, and Bitcoin prices have risen ove

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Author: Assad Jafri