A significant development in cryptocurrency policy is unfolding across the United States, with Dennis Porter, co-founder and CEO of Satoshi Action Fund, revealing that at least 13 states are currently working on “Strategic Bitcoin Reserve” legislation.
The announcement, made via the X platform, on January 3rd indicates an unprecedented level of state-level interest in cryptocurrency policy, with Porter predicting that January will mark a record-breaking month for Bitcoin-related legislative initiatives.Â
The coordinated movement represents one of the most substantial governmental approaches to cryptocurrency integration at the state level.
Executive Order Draft and Federal Implications
The state-level initiatives follow a broader national conversation about Bitcoin reserves. In mid-December 2023, Porter and the Satoshi Action Fund presented a draft executive order designed for potential implementation at the federal level.
The draft order proposes establishing a Strategic Bitcoin Reserve within the Exchange Stabilization Fund (ESF), with provisions for allocating up to 2% of the ESF’s total portfolio value over an 18-month pilot period.
Notably, the proposal suggests utilizing Bitcoin already in U.S. government custody as the foundation for this reserve, indicating a practical approach to implementation that leverages existing resources.
Texas Takes the Lead
Texas has emerged as a frontrunner in this movement, with concrete legislative action already underway.
Republican state Representative Giovanni Capriglione introduced a bill in the Texas House of Representatives specifically aimed at establishing a strategic bitcoin reserve.
The proposed legislation includes provisions for accepting taxes, fees, and donations in Bitcoin, with a mandatory minimum holding period of five years.
This initiative positions Texas as a potential proving ground for similar Treasury operations at the federal level, demonstrating how state-level experimentation could inform national policy.
Strategic Implications and Objectives
The Texas legislation, developed in collaboration with the Satoshi Action Fund, represents a comprehensive approach to state-level Bitcoin adoption.
Its primary objectives extend beyond mere asset accumulation, aiming to enhance the state’s fiscal stability while establishing Texas as a leader in Bitcoin innovation.
The move aligns with broader trends in state-level financial innovation and could serve as a model for other states considering similar legislation.
The five-year minimum holding requirement particularly indicates a long-term strategic approach to Bitcoin integration in state finances, rather than short-term speculation or immediate liquidity concerns.
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