Updated on:12/20/2025 05:03 PM 
Texas legislators have unveiled groundbreaking legislation that could position the state at the forefront of digital asset innovation by establishing a government-managed Bitcoin reserve fund.
Filed on December 13th by Republican Representative Giovanni Capriglione, this forward-thinking bill would authorize the Lone Star State to accept tax payments, administrative fees, and voluntary contributions in Bitcoin, with a mandatory holding period of no less than five years for all collected digital assets.
Officially titled "An Act Relating to the Establishment of a Bitcoin Reserve Within the State Treasury of Texas and the Management of Cryptocurrencies by Governmental Entities," the proposal deliberately avoids provisions for direct government acquisition of Bitcoin, instead focusing on organic growth through voluntary participation.
This strategic initiative, announced during an X Spaces discussion, aims to diversify Texas' financial toolkit while capitalizing on the state's existing robust cryptocurrency mining ecosystem. The development of this legislation benefited from valuable insights provided by the Satoshi Action Fund, a prominent nonprofit organization dedicated to shaping favorable crypto policy frameworks.
As Representative Capriglione explained during the announcement:
As the nation's second-largest economy and home to the highest concentration of Bitcoin mining operations in the United States, Texas possesses unique advantages for integrating cryptocurrency into governmental financial systems. The state's thriving digital mining infrastructure creates natural opportunities for Bitcoin acceptance and utilization.
Advocates for the state-managed Bitcoin reserve argue that embracing cryptocurrency payments from mining enterprises and other tech-forward businesses could further solidify Texas' reputation as a pioneer in digital innovation. According to Capriglione, the legislation aims to strike a balance between regulatory flexibility and promoting broader cryptocurrency adoption throughout the state's economy.
He emphasized that:
This legislative effort aligns with mounting national discussions about incorporating Bitcoin into official government financial strategies. The recent presidential campaign of Donald Trump included proposals for establishing a federal Bitcoin reserve, and market data shows Bitcoin values have climbed over 45% since November's election results, indicating growing investor confidence in cryptocurrency as a legitimate financial asset.
Texas is not alone in exploring cryptocurrency reserve legislation, as several states consider similar approaches to digital asset management. Pennsylvania introduced comparable legislation in November 2023, and other states and nations are actively debating the adoption of comparable cryptocurrency reserve frameworks.
"The Texas initiative represents a significant shift in how state governments view digital assets," noted Satoshi Action Fund CEO Dennis Porter. "We're seeing more states beginning to recognize Bitcoin as a practical solution to economic challenges and a means to enhance financial resilience."
Porter highlighted legislative progress in states like Oklahoma and Louisiana, which have implemented measures protecting cryptocurrency mining operations and individual self-custody rights, as evidence of this growing movement toward cryptocurrency-friendly governance.
Meanwhile, the concept of establishing a federal Bitcoin reserve has gained substantial momentum since being introduced as a serious policy proposal earlier this year. At the Bitcoin 2024 conference, President-elect Trump outlined plans to integrate Bitcoin into national economic strategy, while Wyoming Senator Cynthia Lummis presented her detailed proposal for a federally managed cryptocurrency reserve.
Despite increasing political support and speculation about advanced planning stages, financial market experts remain cautiously optimistic about the timeline for federal implementation while acknowledging the expanding role of Bitcoin as a legitimate component of national financial infrastructure.
