The Texas legislature will consider adopting a Bitcoin strategic reserve following the introduction of a bill Thursday to establish such a program, amid ongoing efforts to do the same on a national level in the United States. The proposed bill, H.B. No. 1598, was introduced by Texas State Representative Giovanni Capriglione. It seeks to build up a supply of Bitcoin for the state, with the funds held for at least five years without being sold, plus it will allow Texas citizens to make donations to the fund.
“A strategic Bitcoin reserve aligns with Texas’s commitment to fostering innovation in digital assets and providing Texans with enhanced financial security,” the text of the bill reads. The bill adds that the cryptocy—held in cold storage, that is, in a wallet on a device not connected to the internet—will not be used to make transactions outside of the state or abroad.
“The comptroller shall prohibit transactions involving foreign countries, entities or individuals outside of Texas, or entities or individuals known to engage in illegal activities,” it reads. Responding to a question from Decrypt, Capriglione said on a Spaces live event on X (formerly known as Twitter) Thursday that the idea had been brewing for some time.
“We’ve slowly planted the seeds and planted the education for members on it,” he said, adding that “probably the biggest enemy of our investments is inflation.” Bitcoin is a payments network, launched in 2009 as a way to send money without the need for a centralized authority like a bank. But it has since evolved into more of a store-of-value asset, championed by some as an inflation hedge.
President-elect Donald Trump has previously told people not to sell their Bitcoin, and some politicians are now calling for the government to hold Bitcoin in reserves—like it already does with gold. Senator Cynthia Lummis of Wyoming proposed a bill earlier this year to establish such a program for the United States.
Texas has attracted Bitcoin miners in recent years due to its cheap electricity and government incentives aimed at encouraging miners to stabilize the electricity grid. The U.S. government already has a large stash of Bitcoin seized from criminals. Blockchain data firm Arkham Intelligence—which tracks large crypto wallets—puts the current government holdings at over 198,000 Bitcoin. That’s more than $20 billion in the cryptocy at today’s prices.
Capriglione said on the Spaces that he’s seen increased interest in Bitcoin and the idea of a strategic reserve since Trump’s election win, as the Republican candidate ran a pro-crypto campaign.
“Since November, obviously, the amount of excitement, desire, and knowledge about not just the Bitcoin reserve, but all of those other things around this technology, blockchain and others, is becoming more in the headspace of legislators,” he said. “And that’s a good thing. That’s because the constituents care about these things.”
Elon Musk's artificial intelligence company xAI has filed a federal lawsuit challenging Minnesota's landmark law banning AI-powered "nudification" technology, arguing…
Bitcoin climbed toward $65,000 as an unusual shift in traditional financial markets created one of the rarest conditions…
Hyperscale Data has sold 100 Bitcoin to accelerate development of its planned artificial intelligence campus in Michigan, sending shares…
A newly launched memecoin called PIPEDOG ($PIPEDOG) became the latest breakout token on Robinhood Chain, surging more than 140x within…
BNY, the world's largest custodian bank, is bringing one of its core financial businesses onto…
A bipartisan group of U.S. senators has reportedly reached a new compromise on the ethics provisions of…