Key Takeaways
- Texas lawmakers have proposed a bill to establish a state bitcoin reserve for taxes, fees and donations.
- The law aims to encourage bitcoin miners to pay taxes using digital assets and hedge against inflation.
Texas lawmakers introduced legislation on 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 CNBC report.
Republican state Rep. Giovanni Capriglione announced the proposal during a 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, an investment in bitcoin, would be a win-win for the country.”
The bill, titled “An Act Relating to the Establishment of a Bitcoin Reserve in the State Treasury of Texas and the Management of Cryptocurrencies by Governmental Entities,” does not list direct plans to buy bitcoin.
Texas, which has the second largest economy in the US and ranks eighth in the world, hosts the highest concentration of bitcoin miners in the country.
The legislation aims to encourage miners to pay taxes using digital assets.
Capriglione stated that his goal is to make the account as expansive as possible. He explained that the initial step allows for flexibility and electability, but with the support of other legislators, it could be even stronger.
The proposal comes after Pennsylvania introduced similar legislation last month.
Up to 10 other states and four countries are considering comparable measures, according to Porter, who helped draft the Texas bill.
Bitcoin has gained more than 45% since the US presidential election, driven in part by Trump’s campaign promise to establish a national strategic bitcoin reserve.
Several states have already passed cryptocurrency-friendly laws.
Oklahoma, Louisiana, Montana, and Arkansas have passed laws that protect mining rights, self-custody, node operation, and peer-to-peer transactions.
The Satoshi Action Fund has introduced 30 pieces of legislation, including Pennsylvania’s proposal for a strategic bitcoin reserve.
