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On Thursday, Dec. 12, Texas Representative Giovanni Capriglione introduced a bill to establish a bitcoin reserve as a financial asset within the state treasury, marking a significant step toward incorporating cryptocurrency into public financial management.
Giovanni Capriglione Introduces Bill for State Bitcoin Reserve
The legislation, titled the Texas Strategic Bitcoin Reserve Act, outlines the creation of a special fund within the state treasury to hold bitcoin (BTC). According to the bill, this fund is intended to enhance fiscal resilience, hedge against economic instability, and foster innovation in digital assets across Texas. The reserve would allow Texans to contribute bitcoin through voluntary donations, aligning with the broader goal of community ownership.
If passed, the bill mandates the Texas comptroller to oversee the management and security of the reserve. The comptroller would implement cold storage solutions to safeguard bitcoin and establish reporting standards to ensure transparency. Under the proposal, the state would retain donated bitcoin for a minimum of five years before considering transfer or conversion. Strict policies would also prohibit transactions involving foreign entities or individuals associated with illegal activities.
Capriglione’s bill underscores Texas’s growing interest in cryptocurrencies, positioning the state as a potential leader in this emerging financial sector. The legislation explicitly recognizes bitcoin’s decentralized nature and limited supply as strategic advantages. It also emphasizes the importance of secure asset custody and regular auditing to maintain public trust in the reserve’s operations.
The bill further authorizes state agencies to accept certain cryptocurrencies for payment, provided they convert these into bitcoin for deposit into the reserve. The comptroller would establish a donation process and potentially offer public recognition for significant contributors. The bill states a biennial report detailing the reserve’s holdings, financial performance, and security measures would be published to ensure accountability.
For the bill to become law, it must secure approval from both chambers of the Texas Legislature and receive the governor’s signature. If enacted, the law would take effect immediately or by Sept. 1, 2025, depending on legislative support. The bill’s expiration date is set for Sept. 1, 2035.
This proposal represents a bold integration of bitcoin into public governance, with potential implications for fiscal policy and digital asset regulation statewide.