Texas 2025 - 89th Regular

Texas House Bill HB1598 Compare Versions

Only one version of the bill is available at this time.

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1	1	By: Capriglione H.B. No. 1598
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6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to the establishment of a bitcoin reserve within the state
9	9	treasury and the management of cryptocurrencies by governmental
10	10	entities.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. This Act may be cited as the Texas Strategic
13	13	Bitcoin Reserve Act.
14	14	SECTION 2. Chapter 403, Government Code, is amended by
15	15	adding Subchapter U to read as follows:
16	16	SUBCHAPTER U. TEXAS STRATEGIC BITCOIN RESERVE
17	17	Sec. 403.701. DEFINITIONS. In this subchapter:
18	18	(1) "Bitcoin" means the decentralized digital asset
19	19	created by a peer-to-peer network, which operates with no central
20	20	authority or banks.
21	21	(2) "Cold storage" means a method of storing private
22	22	keys required to transact in Bitcoin, with a nexus to a secure
23	23	physical location, protected from unauthorized access and isolated
24	24	from any network connections.
25	25	(3) "Cryptocurrency" means a type of virtual currency
26	26	that utilizes cryptography to secure transactions that are
27	27	digitally recorded on a distributed ledger, such as a blockchain.
28	28	(4) "Custody" means the holding, safeguarding, and
29	29	managing of Bitcoin assets by the state treasury.
30	30	(5) "Donor" means a Texas resident who gifts, grants,
31	31	donates, bequests, or devises Bitcoin to the Texas Strategic
32	32	Bitcoin Reserve.
33	33	Sec. 403.702. LEGISLATIVE FINDINGS. The legislature finds
34	34	that:
35	35	(1) the legislature recognizes Bitcoin as a valuable
36	36	digital asset with strategic potential for enhancing the state's
37	37	fiscal resilience;
38	38	(2) Bitcoin's decentralized nature and finite supply
39	39	provide unique qualities that can serve as a hedge against
40	40	inflation and economic volatility; and
41	41	(3) A strategic Bitcoin reserve aligns with Texas's
42	42	commitment to fostering innovation in digital assets and providing
43	43	Texans with enhanced financial security.
44	44	Sec. 403.703. PURPOSE. This fund allows the state to own
45	45	Bitcoin as a financial asset and for Texans to voluntarily donate
46	46	Bitcoin to promote a shared ownership and community investment in
47	47	Texas's financial future.
48	48	Sec. 403.704. ADMINISTRATION OF RESERVE. (a) The Texas
49	49	Strategic Bitcoin Reserve is a special fund in the state treasury
50	50	outside the general revenue fund in the custody of the comptroller
51	51	for the purpose of holding Bitcoin as a financial asset.
52	52	(b) The comptroller shall maintain custody of all Bitcoin
53	53	held in the Reserve and is responsible for implementing secure
54	54	storage, management, and reporting systems for these assets.
55	55	(c) The Reserve is designated as a strategic asset for the
56	56	State of Texas and may not be used for purposes other than those
57	57	outlined in this subchapter.
58	58	(d) The comptroller may accept gifts, grants, and donations
59	59	of Bitcoin from certain Texas residents or a governmental entity as
60	60	defined by Section 2252.001, Government Code.
61	61	(e) The comptroller shall store all Bitcoin for a duration
62	62	of at least five years from the date that the Bitcoin enters the
63	63	state's custody. After this mandatory period, the Bitcoin may be
64	64	transferred, sold, appropriated, or converted to another
65	65	cryptocurrency as directed by the comptroller.
66	66	Sec. 403.705. MANAGEMENT AND SECURITY. (a) The
67	67	comptroller shall develop policies and protocols to ensure the
68	68	secure storage and protection of Bitcoin held in the Reserve,
69	69	including the use of secure custodial technologies, cold storage,
70	70	and best practices in digital asset management.
71	71	(b) The comptroller shall prohibit transactions involving
72	72	foreign countries, entities or individuals outside of Texas, or
73	73	entities or individuals known to engage in illegal activities.
74	74	(c) The comptroller may contract with a qualified,
75	75	independent, United States-based third-party cryptocurrency entity
76	76	to assist in the creation, maintenance, operation, or
77	77	administration of the Reserve's security.
78	78	(d) The comptroller may conduct regular audits of the
79	79	Reserve to ensure transparency and security.
80	80	Sec. 403.706. BIENNIAL REPORTS. (a) The comptroller shall
81	81	prepare a biennial report including:
82	82	(1) the total amount of Bitcoin held in the reserve;
83	83	(2) details of the equivalent value of the reserve in
84	84	dollars;
85	85	(3) the growth of the account since the previous
86	86	report;
87	87	(4) any transactions or expenditures related to the
88	88	Reserve since the previous report;
89	89	(6) any security threats experienced since the
90	90	previous report; and
91	91	(5) the amount of Bitcoin that, after the mandatory
92	92	five-year holding period, is eligible to be converted or
93	93	transferred.
94	94	(b) Not later than December 31 of each even-numbered year,
95	95	the comptroller shall electronically publish the report on the
96	96	comptroller's Internet website and notify each member of the
97	97	legislature that the report is available on the website.
98	98	Sec. 403.707. VOLUNTARY DONATIONS OF BITCOIN BY TEXAS
99	99	RESIDENTS.
100	100	(a) The Texas Strategic Bitcoin Reserve may accept a gift,
101	101	grant, donation, bequest, or devise of Bitcoin from Texas
102	102	residents.
103	103	(b) The comptroller shall develop a straightforward
104	104	donation process to facilitate Bitcoin contributions from Texans.
105	105	(c) All Bitcoin donations shall be held in the Texas
106	106	Strategic Bitcoin Reserve and managed under the same protocols as
107	107	other assets in the treasury.
108	108	(d) Upon request, the comptroller may issue a certificate of
109	109	acknowledgment to individuals or organizations donating Bitcoin to
110	110	the Reserve.
111	111	(e) The treasury may also establish a recognition program to
112	112	publicly honor significant contributions made by Texans.
113	113	(f) The comptroller shall have the discretion to determine
114	114	the eligibility of donors. If the comptroller determines that a
115	115	donor is ineligible, the comptroller may establish a process to
116	116	return any Bitcoin transferred to the reserve to the ineligible
117	117	donor.
118	118	Sec. 403.708. RULEMAKING. The comptroller may adopt rules
119	119	as necessary to administer this subchapter, including but not
120	120	limited to security protocols, reporting standards, and donation
121	121	procedures.
122	122	Sec. 403.709. EXPIRATION. This subchapter expires
123	123	September 1, 2035.
124	124	SECTION 3. The heading to Section 403.023, Government Code,
125	125	is amended to read as follows:
126	126	Sec. 403.023. CREDIT, CHARGE, CRYPTOCURRENCY, AND DEBIT
127	127	CARDS.
128	128	SECTION 4. Section 403.023, Government Code, is amended to
129	129	read as follows:
130	130	(a) The comptroller may adopt rules relating to the
131	131	acceptance of credit, charge, certain cryptocurrencies, and debit
132	132	cards for the payment of fees, taxes, and other charges assessed by
133	133	state agencies. The rules may:
134	134	(1) authorize a state agency to accept credit, charge,
135	135	certain cryptocurrencies, or debit cards for a payment if the
136	136	comptroller determines the best interests of the state would be
137	137	promoted;
138	138	(2) authorize or require a person that uses a credit,
139	139	charge, or debit card to pay a processing fee to the state agency
140	140	that accepts the card for a payment; and
141	141	(3) authorize a particular state agency to accept
142	142	credit, charge, certain cryptocurrencies, or debit cards for a
143	143	payment without providing the same authorization to other state
144	144	agencies.
145	145	(b) The comptroller may adopt rules relating to the use of
146	146	credit or charge cards by state agencies to pay for purchases. The
147	147	rules may:
148	148	(1) authorize a state agency to use credit or charge
149	149	cards if the comptroller determines the best interests of the state
150	150	would be promoted;
151	151	(2) authorize a state agency to use credit or charge
152	152	cards to pay for purchases without providing the same authorization
153	153	to other state agencies; and
154	154	(3) authorize a state agency to use credit or charge
155	155	cards to pay for purchases that otherwise may be paid out of the
156	156	agency's petty cash accounts under Subchapter K.
157	157	(c) The comptroller may not adopt rules about a particular
158	158	state agency's acceptance of credit or charge cards for a payment if
159	159	the rules would affect a contract that the agency has entered into
160	160	that is in effect on September 1, 1993. The comptroller may not
161	161	adopt rules about a particular state agency's acceptance of charge
162	162	or debit cards for a payment if the rules would affect a contract
163	163	that the agency has entered into that is in effect on September 1,
164	164	1999.
165	165	(d) The comptroller may not adopt rules about a particular
166	166	state agency's acceptance or use of credit, charge, cryptocurrency,
167	167	or debit cards if another law specifically authorizes, requires,
168	168	prohibits, or otherwise regulates the acceptance or use.
169	169	(e) State agencies that accept cryptocurrencies shall first
170	170	convert the accepted cryptocurrencies to an equivalent value of
171	171	Bitcoin, if necessary, before depositing the Bitcoin to the credit
172	172	of the Texas Strategic Bitcoin Reserve.
173	173	(f) The comptroller shall establish rules to compensate
174	174	departments or agencies for the equivalent value of United States
175	175	dollars of the Bitcoin received.
176	176	SECTION 5. This Act takes effect immediately if it receives
177	177	a vote of two-thirds of all the members elected to each house, as
178	178	provided by Section 39, Article III, Texas Constitution. If this
179	179	Act does not receive the vote necessary for immediate effect, this
180	180	Act takes effect September 1, 2025.