Texas lawmakers will examine adopting Bitcoin as a strategic reserve after a bill was introduced on Thursday. This comes amid efforts in the United States to set up a similar program.
H.B. No. Giovanni Capriglione is the Texas state representative who introduced 1598. This bill will build a Bitcoin fund for Texas. Funds must be held in the account for at least 5 years before they can be sold.
"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 cryptocurrency—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.
I can confirm that the state of Texas has filed a bill to officially establish a ‘Strategic Bitcoin Reserve’.
This was the very first bill filed on X Spaces.
Congratulations to @VoteGiovanni on his leadership in Bitcoin. pic.twitter.com/uorZoRgXsC
— Dennis Porter (@Dennis_Porter_) December 12, 2024
“The comptroller shall prohibit transactions involving foreign countries, entities or individuals outside of Texas, or entities or individuals known to engage in illegal activities,” The text reads.
Answering a Question DecryptCapriglione revealed on a Spaces event live on X Thursday (formerly Twitter) that the idea was brewing.
“We’ve slowly planted the seeds and planted the education for members on it,” “He said” he added. “probably the biggest enemy of our investments is inflation.”
Bitcoin was launched in 2009 to allow money transfers without the use of a central authority such as a bank. Bitcoin has become more popular as a form of store-of value asset. Some see it as an inflation-hedging tool.
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. Cynthia Lummis, a Wyoming senator who proposed the bill in early this year for establishing such a US program.
Texas attracted Bitcoin miner in the last few years because of its low-cost electricity. The government also offers incentives to miners who stabilize electricity grids.
U.S. law enforcement already owns a significant amount of Bitcoin, which it has confiscated from criminals. Blockchain data firm Arkham Intelligence—which tracks large crypto wallets—puts the current government holdings at over 198,000 Bitcoin. This is more than 20 billion dollars in cryptocurrency today.
Capriglione stated on Spaces that since Trump won the election, he has seen an increased interest in Bitcoin as well as the concept of a “strategic reserve” because the Republican candidate had a crypto-friendly 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.”
Liz Napolitano: Additional Reporting
Editor's note: This story was updated after publication with additional details.