On Thursday, the Texas House proposed a bill aimed at establishing a strategic Bitcoin reserve, which could become a "testbed" for the U.S. Treasury.
Republican State Representative Giovanni Capriglione announced on Thursday at the X Spaces event that the proposal would allow the state to begin establishing a strategic Bitcoin reserve by accepting taxes, fees, and donations in the form of Bitcoin, which would be held for at least five years.
According to the non-profit Bitcoin advocacy organization Satoshi Action Fund dedicated to the bill, this legislation in Texas aims to enhance the state's financial stability and establish it as a leader in Bitcoin innovation.
Capriglione said, "Perhaps the biggest enemy of our investments is inflation. Establishing a strategic Bitcoin reserve and investing in Bitcoin would be a win-win for state governments."
He then said, "I just submitted this bill... titled 'An Act to Establish a Bitcoin Reserve in the Texas State Treasury and Manage Cryptocurrency by Government Agencies.'"
Texas is not only the second-largest economy in the U.S. but also has the highest concentration of Bitcoin miners in the nation. There is hope that some miners will begin to pay taxes in cryptocurrency, although the initial proposal did not include a strategy for directly purchasing Bitcoin.
Capriglione said, "My goal is to make this bill as broad and comprehensive as possible. The first step is to allow some selectivity and flexibility, but if I can get support from other legislators, we will make it stronger."
Since the election, calls for establishing a national strategic Bitcoin reserve have increased, which is one of the campaign promises of elected President Trump to support cryptocurrency. As hopeful investors bet on the establishment of a national strategic Bitcoin reserve in the U.S. further boosting Bitcoin prices, the price of Bitcoin has already risen by more than 45%.
There are some doubts about whether the U.S. will actually establish a Bitcoin reserve or if it can become the world's first to do so. However, this idea could become a positive market catalyst next year and encourage other countries to establish Bitcoin reserves, whether or not the U.S. follows suit.
John Todaro of Needham stated, "This is unlikely to happen, but it helps revive market vitality," adding, "It is also unlikely to bring significant price increases, as we expect the U.S. government will not purchase Bitcoin in any meaningful way, but it does spark excitement and optimism."
Meanwhile, some states in the U.S. are eager to be pioneers in this new territory. According to Satoshi Action Fund CEO Dennis Porter, Pennsylvania is the first state to propose a strategic Bitcoin reserve bill in November, and currently, as many as 10 states are discussing similar legislation.
Porter worked alongside Capriglione on drafting the bill and has also helped lawmakers in other states develop Bitcoin-related legislation. Oklahoma, Louisiana, Montana, and Arkansas have already passed laws to protect mining rights, self-custody rights, node operation rights, and peer-to-peer trading rights. The Satoshi Action Fund has been involved in the introduction of 30 bills so far, including this one in Pennsylvania.
In July, Trump told attendees of the Nashville Bitcoin 2024 conference, "The policy of my government will be to retain 100% of all Bitcoin currently held or acquired by the U.S. government... as the core of a strategic national Bitcoin reserve." At the same event, Wyoming Republican Senator Cynthia Lummis announced her legislation for establishing a national strategic Bitcoin reserve.
Article reposted from: Jinshi Data.
