- The Texas Strategic Bitcoin Reserve Act has been proposed to establish a state-managed Bitcoin reserve as a financial asset
- The reserve will be held in cold storage and maintained by the state comptroller, emphasizing security and transparency
- Texans can voluntarily donate Bitcoin to the reserve, contributing to the state’s financial future
Republican State Representative Giovanni Capriglione has introduced the Texas Strategic Bitcoin Reserve Act (H.B. 1598), aiming to create a state-managed Bitcoin reserve. The initiative positions Bitcoin as a strategic asset to enhance Texas’ financial resilience and support innovation in digital assets. The reserve would be maintained by the state comptroller, with provisions for public transparency and voluntary contributions.
What Is the Texas Strategic Bitcoin Reserve Act?
The proposed legislation seeks to establish a Bitcoin reserve within the state treasury, with Rep. Capriglione describing Bitcoin as “a valuable digital asset with strategic potential for enhancing the state’s fiscal resilience.” According to the bill, Bitcoin’s decentralized nature and limited supply make it an effective hedge against inflation and economic instability.
The act outlines how the reserve will operate, detailing security measures, donation protocols, and administrative responsibilities. The reserve, overseen by the Texas comptroller, would be held in secure cold storage, isolated from network connections to mitigate unauthorized access. “This is about preparing Texas for the future while promoting innovation,” said Capriglione. The reserve would also allow Texans to donate Bitcoin, fostering community ownership.
Security and Transparency
The legislation emphasizes stringent security protocols. The comptroller will implement policies for secure custodial technologies and conduct regular audits to ensure transparency. Biennial reports, published publicly, will include details about the reserve’s value, growth, and any transactions or threats encountered. “Public trust is paramount,” the bill states, highlighting the emphasis on transparency and accountability.
If passed, the act will take effect immediately with a two-thirds legislative vote or on September 1, 2025, if the threshold is unmet. It is part of broader efforts by Texas to position itself as a leader in cryptocurrency and financial innovation.
Texas has become a hotbed of Bitcoin innovation, with mining operations using its natural resources to set up shop or expand existing operations. This explains Texas’ more open attitude towards the cryptocurrency.
