Key Takeaways
- Texas lawmakers proposed a bill to establish a state Bitcoin reserve for taxes, fees, and donations.
- The legislation aims to encourage Bitcoin miners to pay taxes using digital assets and hedge against inflation.
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Texas lawmakers introduced legislation Thursday to establish a Strategic Bitcoin Reserve that would allow the state to collect taxes, fees and donations in Bitcoin and hold them for at least five years, according to a CNBC report. Republican State Representative Giovanni Capriglione announced the proposal during an X Spaces event, framing it as a hedge against inflation.
“Probably the biggest enemy of our investments is inflation,” Capriglione said. “A Strategic Bitcoin Reserve, investing in Bitcoin, would be a win-win for the state.”
The bill, 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,” does not outline direct plans for purchasing Bitcoin.Texas, which has the second-largest economy in the US and ranks eighth globally, hosts the country’s highest concentration of Bitcoin miners. The legislation aims to encourage miners to pay taxes using the digital asset.Capriglione stated that his goal is to make the bill as expansive as possible. He explained that the initial step allows for flexibility and optionality, but with support from other legislators, it could be made even stronger.The proposal follows Pennsylvania’s introduction of similar legislation last month.According to Porter, who assisted in drafting the Texas bill, up to 10 more states and four countries are considering comparable measures.Bitcoin has gained more than 45% since the US presidential election, partly driven by Trump’s campaign promise to establish a national Strategic Bitcoin Reserve. Several states have already enacted crypto-friendly legislation. Oklahoma, Louisiana, Montana and Arkansas have passed laws protecting mining rights, self-custody, node operation, and peer-to-peer transactions. The Satoshi Action Fund has introduced 30 bills, including Pennsylvania’s Strategic Bitcoin Reserve proposal.
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