Texas has introduced a new bill to establish a strategic Bitcoin reserve. The legislation proposes that the state accept Bitcoin payments for taxes, fees, and donations, with the collected Bitcoin
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held in reserve for at least five years.
According to a report from CNBC, the initiative, presented by Republican State Representative Giovanni Capriglione, seeks to bolster Texas’ fiscal stability while positioning the state as a leader in Bitcoin innovation.
Speaking on X Spaces, Capriglione explained the economic rationale behind the proposal, mentioning inflation as a major investment threat.
“A strategic Bitcoin reserve, investing in Bitcoin, would be a win-win for the state,” Capriglione stated.
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Proposed Legislation to Introduce Greater Financial Flexibility
The proposed legislation, formally 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,” aims to introduce greater financial flexibility.
Although the initial proposal stops short of calling for direct Bitcoin purchases by the state, it leaves room for future amendments.
“My goal is to make this bill as big and broad as possible,” Capriglione noted, indicating potential support for future enhancements.
The bill to establish a ‘Strategic Bitcoin Reserve’ in the state of Texas was filed live on X spaces. History has been made. pic.twitter.com/8IZdoMmKYj
— Dennis Porter (@Dennis_Porter_) December 12, 2024
Texas’ move is significant given its status as the second-largest economy in the U.S. and the eighth-largest worldwide. The state is also home to the country’s highest concentration of Bitcoin miners, raising the possibility that some miners may opt to pay taxes in cryptocurrency.
The effort aligns with a broader movement across the U.S. and beyond.
Pennsylvania was the first state to introduce a strategic Bitcoin reserve bill in November, while other states, including Oklahoma, Louisiana, Montana, and Arkansas, have enacted laws protecting the rights to mine, self-custody, and conduct peer-to-peer Bitcoin transactions.
Notably, the Satoshi Action Fund, a nonprofit Bitcoin advocacy organization, played a key role in creating the bill.
According to Dennis Porter, CEO of Satoshi Action Fund, similar bills are being discussed in at least 10 states and four countries.
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Interest in a U.S. National Bitcoin Reserve Increases
Capriglione’s proposal comes at a time of renewed interest in a U.S. national Bitcoin reserve.
During the Bitcoin 2024 conference in Nashville, former President Donald Trump pledged to preserve all Bitcoin held or acquired by the U.S. government as part of a “strategic national Bitcoin stockpile.”
Wyoming Senator Cynthia Lummis has also proposed legislation to create a federal Bitcoin reserve.
Despite the growing momentum, skepticism remains about the feasibility of a U.S. Bitcoin reserve. Needham analyst John Todaro told CNBC that while the idea could fuel market enthusiasm, the U.S. will unlikely make significant Bitcoin purchases.
“It’s unlikely to drive material price gains, but it’s an item that drives excitement and optimism,” Todaro explained.
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The post Texas Proposes Creating Bitcoin Reserve by Accepting Taxes, Fees, and Donations in BTC appeared first on 99Bitcoins.