The Texas legislature introduced a bill to establish a systematic bitcoin reserve

Republican State Representative Giovanni Caprileone has officially filed for the creation of a strategic Bitcoin (BTC) reserve for Texas.

According to him, the bill aims to strengthen the government's leadership in digital innovation and strengthen fiscal stability.

The proposed law

Capriglione announced the proposed Texas Strategic Bitcoin Reserve Act (HB No. 1598) at an XSpace event on Thursday, sharing the document highlighting BTC's decentralized nature, limited supply, and strategic value in strengthening the state's financial stability and resiliency. .

He believes that the legislative initiative will fight inflation and prevent economic volatility. He described it as a “win-win” investment that encourages innovation while providing a broad framework for managing reserve cryptocurrency holdings.

The law suggests creating a Bitcoin reserve under the supervision of a state comptroller that would be managed as a special fund outside of the general revenue fund in the Texas state treasury. If approved, it will allow local residents to pay taxes and fees and make contributions in cryptocurrency, holdings will be held for at least five years.

The framework also allows residents to contribute Bitcoin to the reserve, emphasizing public participation in the state's financial innovation.

A two-thirds vote of both houses of the Legislature would allow the provisions of the proclamation to take effect immediately. Otherwise, effective September 1, 2025. In addition, the Act will expire on September 1, 2035, unless extended by future amendments.

Texas will move forward as governments embrace Bitcoin integration

Capriglione's proposal is part of a growing movement to adopt bitcoin across the United States. Representative Mike Cabell recently introduced a similar bill in Pennsylvania, which would allow up to 10% of state funds to be invested in large digital assets.

In a November 12 memo, Cabell highlighted BTC's potential use as a hedge against inflation, citing its adoption by financial institutions and governments.

“In recent years, many financial institutions and sovereign governments, including the United States, have invested in Bitcoin to protect their portfolios from economic volatility,” he said.

The legislative move follows the passage of Pennsylvania's “Bitcoin Bill of Rights” in the wake of broader legislative efforts nationwide. Other states, including Oklahoma, Louisiana, Montana, and Arkansas, have enacted laws protecting crypto mining and self-defense rights.

The momentum also aligns with President-elect Donald Trump's bullish stance on virtual currency. His promise to establish a Bitcoin repository in the U.S., which hit the campaign trail while soliciting the crypto community's vote, was recently reiterated by Wyoming Senator Cynthia Lammis.

In the year On November 6, the United States Treasury announced its intention to push for passage of the Fostering Innovation, Technology and Competitiveness through the Facilitated Investment in Nationwide (BITCOIN) Act, which would ensure the purchase of 1 million BTC over five years.