Bitcoin in State Treasury? Texas Representative Proposes Strategic Reserve
2024-12-13
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House Bill 1598, introduced by Texas Representative Giovanni Capriglione on Dec. 12, outlines a plan to establish a Bitcoin reserve within the state treasury. The bill, titled the Texas Strategic Bitcoin Reserve Act, details the state comptroller’s responsibilities for managing Bitcoin as a financial asset, including provisions for secure storage and a long-term holding strategy.
Under the proposed legislation, the Texas comptroller would acquire and manage Bitcoin as a reserve asset to diversify the state’s financial holdings. The Bitcoin reserve would need to be maintained for a minimum of five years, underscoring the long-term strategic intent of this proposal. To safeguard these assets, the bill mandates the use of cold storage methods, ensuring that private keys remain isolated from network connections and protected in secure physical locations.
The legislation emphasizes the potential of Bitcoin to serve as a financial diversification tool within the state treasury, aligning with broader trends of integrating digital assets into traditional finance. The comptroller’s role would also include ongoing oversight of the Bitcoin reserve to ensure compliance with the specified storage and management requirements.
The Texas legislature is scheduled to reconvene for its 89th regular session on Jan. 14, 2025, at which point House Bill 1598 will be considered. If enacted, the legislation could position Texas as a leader among U.S. states in adopting blockchain technology and digital assets for state-level financial management.
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