As part of the movement to embrace digital assets, Texas Representative Giovanni Capriglione has introduced a bill to create a strategic reserve fund. The bill, known as the Texas Strategic Bitcoin Reserve Act, would create a special fund within the Treasury specifically to hold Bitcoin as a financial asset.
The bill outlines definitions related to reserves, including “bitcoin,” “cold storage,” “cryptocurrency,” and “custody.” This is in line with Texas' commitment to foster innovation in digital assets and highlights Bitcoin's decentralized nature and potential as a hedge against inflation.
The Texas Strategic Bitcoin Reserve will be managed by the State Comptroller, who is responsible for the secure storage, management, and reporting of Bitcoin assets. The comptroller will also have the authority to accept Bitcoin donations from Texas residents and government agencies to promote shared ownership and community investment in the state's fiscal future.
The bill provides that all Bitcoins held in reserves must be held for at least five years before being transferred, sold, or exchanged. To ensure security and transparency, the Comptroller General is tasked with developing policies and procedures for protected area management, including regular audits and biennial reports that are published online.
The report details the total amount of Bitcoin held, equivalent dollar value, account growth, transactions, security threats, and the amount eligible for exchange after a five-year holding period.
In addition, the Comptroller may issue certificates of recognition to donors and establish recognition programs to recognize significant contributions. The inspector general also has discretion over donor eligibility and the authority to return Bitcoin to ineligible donors.
The bill includes a provision to accept certain cryptocurrencies for payment of state fees and taxes, which must be converted to Bitcoin before being deposited into reserves. The inspector general is also empowered to establish rules to compensate departments and agencies for Bitcoins they receive.
If passed, the Texas Strategic Bitcoin Preparation Act would go into effect immediately with a two-thirds majority vote in both chambers. Otherwise, this law is scheduled to take effect on September 1, 2025 and expire on September 1, 2035.
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