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Dec 16, 2024
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Texas House Introduces Bill to Establish Strategic Bitcoin Reserve
A bill has been introduced in the Texas House of Representatives to establish a strategic bitcoin reserve, signaling a bold move in the crypto sector. The bill, spearheaded by Republican State Representative Giovanni Capriglione, is set to position Texas as a leader in Bitcoin innovation while potentially laying a foundation for broader U.S. adoption.
The proposed legislation outlines a plan for the state to accept taxes, fees, and donations in Bitcoin. These holdings would form the reserve's backbone, remaining untouched for at least five years. During an X Spaces event on Thursday, Capriglione described the proposal as a hedge against economic instability.
“Probably the biggest enemy of our investments is inflation,” he 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," is designed to offer flexibility in its initial stages. “My goal is to make this bill as big and as broad as possible,” Capriglione added, emphasizing its potential scalability with future legislative support.
Texas Leads in Bitcoin Mining
Economically, Texas is the second-highest in rank within the federation and eighth in the world. The state has the largest proportion of the country's Bitcoin mining farms, which creates an opportunity for cryptocurrency tax payments. The initial proposal does not require the state to directly purchase bitcoin, allowing flexibility for future developments.
Locally and globally, the idea of creating strategic reserves of bitcoins is gaining momentum, particularly after President-elect Donald Trump promised to undertake measures to ensure the establishment of a national bitcoin reserve. After the elections, the Bitcoin price has surged about 45%, and various investors are looking forward to such moves that will further boost the Bitcoin price.
In spite of this growing trend, several experts question whether the U.S. will establish a federal bitcoin reserve. According to John Todaro of Needham, although the chances that such plans will be realized are slim, the idea might cultivate some excitement in the markets. However, he does not expect any major price action as he does not see the U.S. government in his vision buying bitcoin in any meaningful volume.
“unlikely to occur, but it helps get animal spirits back into the market. [It’s] unlikely to drive material price gains, as we do not expect the U.S. government will purchase bitcoin in any meaningful capacity, but it’s an item that drives excitement and optimism,” said John Todaro.
States and Countries Join the Bitcoin Reserve Race
Doubts persist at the federal level, yet several states are taking the lead. Pennsylvania recently introduced the first strategic Bitcoin reserve bill, followed by at least ten additional states and four countries exploring similar measures. Capriglione’s associate, Porter, has played a key role in drafting bitcoin-related legislation across the nation.
States, including Oklahoma, Louisiana, Montana, and Arkansas, have already enacted laws to protect bitcoin-related rights, such as mining, self-custody, running nodes, and peer-to-peer transactions. The Satoshi Action Fund, which backs cryptocurrency legislation, has introduced 30 bills, further propelling this momentum.
The movement extends beyond state boundaries. At the Bitcoin 2024 conference in Nashville, Trump announced a policy to retain 100% of the U.S. government’s current and future Bitcoin holdings as part of a national stockpile. Wyoming Senator Cynthia Lummis also introduced the BITCOIN Act, highlighting growing political interest in a national reserve.
Texas’s effort to establish a Bitcoin reserve may serve as a testing ground for the U.S. Treasury, potentially motivating other states and nations to follow suit. Although it is unclear whether this will mark the beginning of a new fiscal era, the momentum is undeniable. With Bitcoin’s capacity to influence economic policy, Texas’s initiative may set the stage for a broader financial transformation.
A bill has been introduced in the Texas House of Representatives to establish a strategic bitcoin reserve, signaling a bold move in the crypto sector. The bill, spearheaded by Republican State Representative Giovanni Capriglione, is set to position Texas as a leader in Bitcoin innovation while potentially laying a foundation for broader U.S. adoption.
The proposed legislation outlines a plan for the state to accept taxes, fees, and donations in Bitcoin. These holdings would form the reserve's backbone, remaining untouched for at least five years. During an X Spaces event on Thursday, Capriglione described the proposal as a hedge against economic instability.
“Probably the biggest enemy of our investments is inflation,” he 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," is designed to offer flexibility in its initial stages. “My goal is to make this bill as big and as broad as possible,” Capriglione added, emphasizing its potential scalability with future legislative support.
Texas Leads in Bitcoin Mining
Economically, Texas is the second-highest in rank within the federation and eighth in the world. The state has the largest proportion of the country's Bitcoin mining farms, which creates an opportunity for cryptocurrency tax payments. The initial proposal does not require the state to directly purchase bitcoin, allowing flexibility for future developments.
Locally and globally, the idea of creating strategic reserves of bitcoins is gaining momentum, particularly after President-elect Donald Trump promised to undertake measures to ensure the establishment of a national bitcoin reserve. After the elections, the Bitcoin price has surged about 45%, and various investors are looking forward to such moves that will further boost the Bitcoin price.
In spite of this growing trend, several experts question whether the U.S. will establish a federal bitcoin reserve. According to John Todaro of Needham, although the chances that such plans will be realized are slim, the idea might cultivate some excitement in the markets. However, he does not expect any major price action as he does not see the U.S. government in his vision buying bitcoin in any meaningful volume.
“unlikely to occur, but it helps get animal spirits back into the market. [It’s] unlikely to drive material price gains, as we do not expect the U.S. government will purchase bitcoin in any meaningful capacity, but it’s an item that drives excitement and optimism,” said John Todaro.
States and Countries Join the Bitcoin Reserve Race
Doubts persist at the federal level, yet several states are taking the lead. Pennsylvania recently introduced the first strategic Bitcoin reserve bill, followed by at least ten additional states and four countries exploring similar measures. Capriglione’s associate, Porter, has played a key role in drafting bitcoin-related legislation across the nation.
States, including Oklahoma, Louisiana, Montana, and Arkansas, have already enacted laws to protect bitcoin-related rights, such as mining, self-custody, running nodes, and peer-to-peer transactions. The Satoshi Action Fund, which backs cryptocurrency legislation, has introduced 30 bills, further propelling this momentum.
The movement extends beyond state boundaries. At the Bitcoin 2024 conference in Nashville, Trump announced a policy to retain 100% of the U.S. government’s current and future Bitcoin holdings as part of a national stockpile. Wyoming Senator Cynthia Lummis also introduced the BITCOIN Act, highlighting growing political interest in a national reserve.
Texas’s effort to establish a Bitcoin reserve may serve as a testing ground for the U.S. Treasury, potentially motivating other states and nations to follow suit. Although it is unclear whether this will mark the beginning of a new fiscal era, the momentum is undeniable. With Bitcoin’s capacity to influence economic policy, Texas’s initiative may set the stage for a broader financial transformation.
A bill has been introduced in the Texas House of Representatives to establish a strategic bitcoin reserve, signaling a bold move in the crypto sector. The bill, spearheaded by Republican State Representative Giovanni Capriglione, is set to position Texas as a leader in Bitcoin innovation while potentially laying a foundation for broader U.S. adoption.
The proposed legislation outlines a plan for the state to accept taxes, fees, and donations in Bitcoin. These holdings would form the reserve's backbone, remaining untouched for at least five years. During an X Spaces event on Thursday, Capriglione described the proposal as a hedge against economic instability.
“Probably the biggest enemy of our investments is inflation,” he 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," is designed to offer flexibility in its initial stages. “My goal is to make this bill as big and as broad as possible,” Capriglione added, emphasizing its potential scalability with future legislative support.
Texas Leads in Bitcoin Mining
Economically, Texas is the second-highest in rank within the federation and eighth in the world. The state has the largest proportion of the country's Bitcoin mining farms, which creates an opportunity for cryptocurrency tax payments. The initial proposal does not require the state to directly purchase bitcoin, allowing flexibility for future developments.
Locally and globally, the idea of creating strategic reserves of bitcoins is gaining momentum, particularly after President-elect Donald Trump promised to undertake measures to ensure the establishment of a national bitcoin reserve. After the elections, the Bitcoin price has surged about 45%, and various investors are looking forward to such moves that will further boost the Bitcoin price.
In spite of this growing trend, several experts question whether the U.S. will establish a federal bitcoin reserve. According to John Todaro of Needham, although the chances that such plans will be realized are slim, the idea might cultivate some excitement in the markets. However, he does not expect any major price action as he does not see the U.S. government in his vision buying bitcoin in any meaningful volume.
“unlikely to occur, but it helps get animal spirits back into the market. [It’s] unlikely to drive material price gains, as we do not expect the U.S. government will purchase bitcoin in any meaningful capacity, but it’s an item that drives excitement and optimism,” said John Todaro.
States and Countries Join the Bitcoin Reserve Race
Doubts persist at the federal level, yet several states are taking the lead. Pennsylvania recently introduced the first strategic Bitcoin reserve bill, followed by at least ten additional states and four countries exploring similar measures. Capriglione’s associate, Porter, has played a key role in drafting bitcoin-related legislation across the nation.
States, including Oklahoma, Louisiana, Montana, and Arkansas, have already enacted laws to protect bitcoin-related rights, such as mining, self-custody, running nodes, and peer-to-peer transactions. The Satoshi Action Fund, which backs cryptocurrency legislation, has introduced 30 bills, further propelling this momentum.
The movement extends beyond state boundaries. At the Bitcoin 2024 conference in Nashville, Trump announced a policy to retain 100% of the U.S. government’s current and future Bitcoin holdings as part of a national stockpile. Wyoming Senator Cynthia Lummis also introduced the BITCOIN Act, highlighting growing political interest in a national reserve.
Texas’s effort to establish a Bitcoin reserve may serve as a testing ground for the U.S. Treasury, potentially motivating other states and nations to follow suit. Although it is unclear whether this will mark the beginning of a new fiscal era, the momentum is undeniable. With Bitcoin’s capacity to influence economic policy, Texas’s initiative may set the stage for a broader financial transformation.
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