Texas House eyes Bitcoin reserve laws

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As a seasoned crypto investor with over two decades of market experience under my belt, I must say that the recent developments in Texas and across the nation are nothing short of exhilarating. The introduction of the Bitcoin reserve bill in Texas is indeed a historical milestone, marking a significant step towards mainstream adoption of digital currencies.

In response to the growing enthusiasm for cryptocurrency, following Donald Trump’s election victory on November 6th, a proposal for a Bitcoin reserve was submitted to the Texas House of Representatives.

Texas Republican Representative Giovanni Capriglione has put forward a proposal to establish a strategic reserve of Bitcoin (BTC) in the state, with the intention of holding the cryptocurrency for at least five years. The objective behind this initiative, as outlined by Capriglione during a live broadcast on X Spaces on December 12th, is to accept donations, taxes, and fees in Bitcoin as a means of safeguarding Texas against rising inflation within the United States and globally.

The Texas Representative aims to gain support from other lawmakers by adjusting the bill to stay adaptable and as comprehensive as possible.

The bill to establish a ‘Strategic Bitcoin Reserve’ in the state of Texas was filed live on X spaces. History has been made.

— Dennis Porter (@Dennis_Porter_) December 12, 2024

The significant 50% increase in the value of Bitcoin since Donald Trump achieved what Anthony Scaramucci called “the most impressive political comeback in U.S. history” has led to louder demands for a national strategic Bitcoin reserve to be established.

At a Bitcoin conference in Nashville, President-elect Trump pledged to keep all of America’s 207,000 Bitcoins in storage. Meanwhile, Senator Cynthia Lummis revealed her proposal to acquire 4% of the total 21 million Bitcoins that exist at the same event.

After the election, various states have been competing to implement regulations that precede federal guidelines. Specifically, Arkansas, Louisiana, Montana, Oklahoma, and Pennsylvania have enacted laws to secure individual custody, mining operations, and peer-to-peer transactions within their jurisdictions.

Alabama’s Auditor General, Andrew Sorrell, suggested setting up a Bitcoin (BTC) reserve for the state itself. According to Dennis Porter, founder of the Satoshi Fund Act, around 12 different states have been contemplating this idea.

While some critics, including investment expert Charles K. Bobrinksy, remain skeptical of Bitcoin, they have labeled it as a bubble and discourage its adoption by the U.S. government.

Financial advisers such as BlackRock have suggested aligning Bobrinskoy’s perspective, given that billions are pouring into Bitcoin-related products, like spot exchange-traded funds. BlackRock suggests investors might consider investing up to 2% in Bitcoin, an opinion supported by Tim Ogilvie, Kraken’s institutional vice president, as mentioned in an email to crypto.news.

Investing in Cryptocurrencies, initially spearheaded by Bitcoin and more recently expanding into Ethereum, has emerged as a vital component of a diverse investment portfolio. Even though we are only scratching the surface of institutional adoption of digital currencies, it seems that the momentum towards including cryptocurrencies within portfolios will intensify as institutions seek to leverage their growth potential.

Tim Ogilvie, Kraken vice president of Institutional

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2024-12-12 21:30