Texas Proposes Bitcoin Reserve Bill Reflecting Trump's Vision

In a notable step aligning with President-elect Donald Trump’s vision for cryptocurrency, Texas introduced a bill on Thursday that seeks to establish a strategic Bitcoin BTC/USD reserve. This initiative underscores the state's growing recognition of Bitcoin as a significant financial asset.

What Happened: The bill, introduced by Texas Republican Representative Giovanni Capriglione, is called the Texas Strategic Bitcoin Reserve Act. This legislation proposes creating a dedicated fund within the state treasury specifically aimed at holding Bitcoin.

The bill specifies that the Bitcoin acquired will be kept for a minimum holding period of five years. After this period, the funds can be sold, appropriated, or converted into other assets based on the decisions made by a state comptroller.

The proposed legislation notes, "The legislature recognizes Bitcoin as a valuable digital asset with strategic potential for enhancing the state's fiscal resilience." This acknowledgment reflects a broader trend of states looking for innovative financial strategies.

Texas has gained a reputation as a key Bitcoin mining center in the United States, attracting major mining companies such as Riot Platforms and MARA Holdings.

Why It Matters: The proposal is part of a growing discourse around establishing strategic Bitcoin reserves at different governance levels. Earlier, President-elect Donald Trump expressed optimism about cryptocurrencies, stating, “We’re going to do something great with cryptocurrency,” when discussing the potential of such reserves.

Moreover, Republican Senator Cynthia Lummis of Wyoming has already taken steps at the federal level, proposing a bill that would allow the Treasury Department to purchase one million Bitcoin over five years, with a requirement to hold them for at least 20 years.

This legislative movement follows Pennsylvania's recent efforts to establish its own cryptocurrency reserve. The Pennsylvania Bitcoin Strategic Reserve Act aims to permit the state treasury to invest up to 10% of its $7 billion reserves in Bitcoin, marking a first-of-its-kind initiative.

Price Action: As of the latest data, Bitcoin was trading at $99,483.75, representing a 1.37% decline in the last 24 hours.

The trends emerging from these legislative proposals may signal a pivotal shift in how states view and interact with digital currencies. The incorporation of Bitcoin into state treasury funds reflects an evolving financial landscape and could set a precedent for other states to follow.

Texas, Bitcoin, Legislation