Bill Introduced for Strategic Bitcoin Reserve

A bill was introduced on Thursday to create a strategic bitcoin reserve following President-elect Donald Trump's support for investing in bitcoin and as similar bills circulate.

Texas Republican Rep. Giovanni Capriglione filed this bill, House Bill 1598, during an X space on Thursday hosted by the Satoshi Act Fund, a bitcoin mining advocacy group.

> "I just filed the bill," Capriglione said during the X spaces. "It’s a bill to be entitled ‘an act relating to the establishment of a bitcoin reserve within the state treasury of Texas and the management of cryptocurrencies by governmental entities filed in the state of Texas strategic bitcoin reserve."

Capriglione mentioned that the bill would create a reserve account through donations, held for a maximum of five years. Texas is notably the eighth-largest economy in the world.

A strategic bitcoin reserve has also been discussed at the federal level, with President-elect Donald Trump supporting the idea. Ahead of the elections in November, Trump vowed to create a strategic bitcoin reserve. During an interview with CNBC, he reiterated his commitment, stating, "we're gonna do something great with crypto, 'cause we don't want China, or anybody else, not just China, others are embracing it, and we want to be the head."

Trump is not alone in his endeavors; Republican Sen. Cynthia Lummis of Wyoming has a draft bill aimed at directing the U.S. Treasury to buy one million bitcoin over five years.

Additionally, other states have introduced bills to invest in bitcoin. Pennsylvania Republican lawmakers introduced a bill in November allowing the state treasurer to invest in bitcoin, digital assets, and crypto-based exchange-traded products.

However, the idea of a strategic bitcoin reserve has faced criticism. Former Federal Reserve Bank of New York President Bill Dudley recently stated that it would be detrimental for Americans in a Bloomberg opinion article.

> "What’s in it, though, for the government or for people who don’t hold Bitcoin? Nothing good," Dudley wrote. "There’s no exit strategy, so the purpose must be to push prices higher, not create value for the government — which would be stuck holding volatile tokens that produce no income."