The Texas House of Representatives has introduced a new bill to create a strategic Bitcoin reserve, potentially positioning the state as a leader in cryptocurrency innovation.
The bill, introduced by Republican State Representative Giovanni Capriglione during an X Spaces event today, proposes accepting taxes, fees, and donations denominated in Bitcoin that will be held for at least five years.
Capriglione noted that the initiative aims to strengthen Texas’ financial stability while also supporting its leadership in Bitcoin adoption. “Probably the biggest enemy of our investments is inflation,” he explained. “A strategic BTC reserve, investing in BTC, would be a win-win for the state.”
The bill, titled An Act to Establish a Bitcoin Reserve in the Texas State Treasury and to Manage Cryptocurrencies by Public Institutions, demonstrates Texas’ desire to leverage its significant Bitcoin mining presence, the highest concentration in the United States, to further integrate crypto into its economy.
While the bill does not include a direct BTC purchase strategy, the hope is that miners and businesses operating in Texas will start paying taxes in BTC. “My goal is to make this bill as big and comprehensive as possible,” Capriglione said, adding that future iterations could expand depending on legislative support.
The proposal comes amid growing calls for a national bitcoin reserve, one of President-elect Donald Trump’s crypto-friendly campaign promises. Bitcoin has rallied more than 45% since the election as investors see such initiatives driving adoption and boosting its value.
But analysts are skeptical of the federal government creating a BTC reserve. “It’s unlikely that the U.S. government will buy BTC in any meaningful capacity, but the idea does help rekindle optimism in the market,” John Todaro of Needham told CNBC.
Texas is not alone in exploring strategic Bitcoin reserves. Pennsylvania introduced a similar bill last month, and at least 10 states and four countries are considering related legislation. States such as Oklahoma, Louisiana, Montana, and Arkansas have already passed laws protecting BTC mining, self-custody, and peer-to-peer transactions.
Porter, a co-author of the Texas bill and a proponent of BTC legislation nationwide, said these initiatives aim to chart a path forward for crypto integration. “We have 30 bills introduced so far, and the momentum is building,” Porter said.
*This is not investment advice.
