In a move to embrace digital assets, Texas State Representative Giovanni Capriglione has introduced a bill aimed at establishing a strategic Bitcoin reserve. The proposed legislation, known as the Texas Strategic Bitcoin Reserve Act, seeks to create a special fund within the state treasury specifically for holding Bitcoin as a financial asset.
The bill outlines the definitions relevant to the reserve, including "Bitcoin," "cold storage," "cryptocurrency," and "custody." It emphasizes the decentralized nature of Bitcoin and its potential as a hedge against inflation, aligning with Texas's commitment to fostering innovation in digital assets.
The Texas Strategic Bitcoin Reserve would be managed by the state comptroller, who would be responsible for the secure storage, management, and reporting of the Bitcoin assets. The comptroller would also have the authority to accept Bitcoin donations from Texas residents or governmental entities, with the aim of promoting shared ownership and community investment in the state's financial future.
The bill stipulates that all Bitcoin held in the reserve must be stored for a minimum of five years before it can be transferred, sold, or converted. To ensure security and transparency, the comptroller is tasked with developing policies and protocols for the reserve's management, including regular audits and biennial reports to be published online.
The reports will detail the total amount of Bitcoin held, its equivalent value in dollars, account growth, transactions, security threats, and the amount eligible for conversion after the five-year holding period.
Additionally, the comptroller may issue certificates of acknowledgment to donors and establish a recognition program to honor significant contributions. The comptroller also has discretion over donor eligibility and the ability to return Bitcoin to ineligible donors.
The bill includes provisions for the acceptance of certain cryptocurrencies for the payment of state fees and taxes, with the requirement that these be converted to Bitcoin before being deposited into the reserve. The comptroller is also empowered to establish rules for compensating departments or agencies for the Bitcoin received.
If passed, the Texas Strategic Bitcoin Reserve Act would take immediate effect if it secures a two-thirds majority vote in both houses. Otherwise, the Act is set to take effect on September 1, 2025, and will expire on September 1, 2035.
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