The Texas Legislature has introduced a bill to establish a state-controlled Bitcoin reserve with the aim of exploring the potential role of cryptocurrencies in public finances.
The bill, introduced by Republican Rep. Giovanni Capriglione on Dec. 13, would allow states to collect taxes, fees and contributions in Bitcoin and hold the assets for at least five years.
The proposal, titled “An Act Concerning the Establishment of a Bitcoin Reserve in the Texas Treasury and Control of Cryptocurrency by Government Agencies,” does not include any provision for the state to directly purchase Bitcoin.
Instead, it focuses on building reserves through voluntary contributions and payments.
The proposal, announced during the X Spaces event, aims to provide states with an alternative financial tool while leveraging 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 major challenge in preserving the value of long-term investments. This initiative provides an opportunity to explore Bitcoin as a potential safeguard for state fiscal stability.”
Texas’ role in cryptocurrencies
As the second largest economy in the United States, Texas has the highest concentration of Bitcoin miners in the country, providing a unique opportunity to incorporate cryptocurrencies into the state's operations.
Supporters of the bill suggest that accepting Bitcoin payments from these entities could further strengthen Texas' role as a leader in digital innovation. Capriglione said the bill's goal is to provide “flexibility while encouraging broader adoption.”
He added:
“This proposal is a starting point and has scope for further development with legislative support.”
The bill coincides 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 more than 45% since the November election, reflecting increased market attention.
Bitcoin reserve debate continues
Texas is one of several states considering legislation related to Bitcoin reserves. Pennsylvania introduced a similar proposal in November, and discussions have already begun to adopt similar measures in other states and countries.
Dennis Porter, chief executive officer of the Satoshi Action Fund, said Texas' efforts reflect broader changes across U.S. states, with many states using the system as a tool to deal with economic challenges. “We are starting to consider Bitcoin.”
He pointed to legislation focused on protecting mining and self-management rights in states such as Oklahoma and Louisiana as a clear indicator that the movement is growing.
Meanwhile, the concept of a federal Bitcoin reserve has also received a lot of attention since it was first announced as a legal plan earlier this year.
At the Bitcoin 2024 conference, President-elect Trump highlighted plans to incorporate Bitcoin into national strategy, and Wyoming Sen. Cynthia Lummis announced her own proposal for the Federal Reserve System.
Despite growing interest and rumors that plans are at an advanced stage, market analysts remain cautious about potential federal action, although they acknowledge growing interest in Bitcoin as a financial instrument. .
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