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Texas and Alabama Eye Strategic Bitcoin Reserves Amid Crypto Market Surge

Dec 12, 2024, 04:21 PM

Texas State Representative Giovanni Capriglione has officially filed a bill to establish a Strategic Bitcoin Reserve for the state of Texas. This move comes as part of a broader trend where states are considering holding cryptocurrencies to diversify their investments and attract business. The bill was introduced live on X Spaces, marking a historic moment in legislative proceedings. Capriglione's initiative follows a similar call by Alabama State Auditor Andrew Sorrell for a strategic Bitcoin reserve in his state, citing potential benefits like driving business, attracting investment, and protecting against inflation. The proposal in Texas aims to position the state as a leader in embracing new technologies, potentially influencing other states to follow suit. Alabama's initiative was inspired by President-elect Donald Trump's promise to create a national Bitcoin stockpile, following Bitcoin's price surge and his meetings with top crypto executives. Sorrell believes that states increasing their holdings in the growing $3 trillion crypto asset class will attract business and investment, offering diversification and protection against inflation. The U.S. Treasury is also considering a strategic Bitcoin reserve through the BITCOIN Act introduced by U.S. Sen. Cynthia Lummis. States like Florida and Pennsylvania are debating similar models, with the SEC's authorization of Bitcoin and Ethereum ETFs facilitating easier state investments in cryptocurrencies.