88R19017 KSM-F

By: Harris of Anderson H.C.R. No. 89

CONCURRENT RESOLUTION

WHEREAS, Bitcoin was created by the person or persons who represent the pseudonymous author Satoshi Nakamoto, who wrote the whitepaper describing the Bitcoin network and peer-to-peer transfers of a new kind of digital currency; Nakamoto and software engineer Hal Finney participated in the first Bitcoin transaction on January 3, 2009; and

WHEREAS, Bitcoin introduced a number of technological breakthroughs, including the holding of cryptographic keys that represent a person's ownership of Bitcoin and the "blockchain," or "distributed ledger," technology that provides an ongoing, public record of the history of transactions on the network; and

WHEREAS, The Bitcoin network is secure, and peer-to-peer transactions are confirmed by Bitcoin miners who use specialized computers and complex algorithms to solve math problems; the first miner to solve the problem wins the block and receives newly minted Bitcoins as a block reward; and

WHEREAS, Over the years, Bitcoin has become a widely used cryptocurrency, and Bitcoin miners in Texas make up approximately 25 percent of all Bitcoin mining activity in the United States; owners of Bitcoin are able to custody the cryptocurrency in digital wallets that prevent unlawful seizure of individual property, and they can participate in censorship-resistant transactions on the Bitcoin network; and

WHEREAS, The Chinese government banned both the trading and mining of cryptocurrency in 2021, and this decision represents an authoritarian form of rule that is in complete opposition to the values of the United States; many Bitcoin miners left China to continue their work in other countries; known as the "great mining migration," this event benefited Texas, both as a state and as one of the largest economies in the world; however, other states and countries, such as New York and parts of Europe, have considered banning or temporarily suspending Bitcoin mining activities; and

WHEREAS, The Lone Star State has certain principles regarding items of value that are embedded in the Texas Constitution, and these principles should be applied to all citizens with respect to the use and storage of Bitcoin; now, therefore, be it

RESOLVED, That the 88th Legislature of the State of Texas hereby express support for protecting individuals who code or develop on the Bitcoin network in accordance with Section 8, Article I, Texas Constitution, which states that "Every person shall be at liberty to speak, write or publish his opinions on any subject"; and, be it further

RESOLVED, That individuals who mine Bitcoin in Texas will never be inhibited by any law or resolution that restricts the practice of securing the Bitcoin network for the safety of the virtual currency, which is held and transferred peer-to-peer; and, be it further

RESOLVED, That all Bitcoin miners are welcome to seek out any forms of energy to help secure the Bitcoin network in the state of Texas; and, be it further

RESOLVED, That the individuals who own Bitcoin should be protected under Section 9, Article I, Texas Constitution, which states that "The people shall be secure in their persons, houses, papers and possessions, from all unreasonable seizures or searches"; this right should also extend to digital possessions, such as cryptocurrencies; and, be it further

RESOLVED, That no citizen of Texas shall ever be deprived of their right to own Bitcoin and that all Bitcoin owners will be protected as they enjoy all the privileges associated with the cryptocurrency, including the immunity afforded by censorship-resistant spending of Bitcoin and the ability to store Bitcoin in an unhosted wallet without undue interference from any state agency; these protections shall be extended to Bitcoin owners in accordance with Section 19, Article I, Texas Constitution, which states that "No citizen of this State shall be deprived of life, liberty, property, privileges or immunities, or in any manner disfranchised, except by the due course of the law of the land"; and, be it further

RESOLVED, That those in the United States and the broader global network who work on Bitcoin coding, programming, and mining, shall know by this resolution that the Bitcoin economy is welcome in Texas, and that the Texas Legislature shall always seek to protect the rights of its citizens under the law and foster the growth and development of local businesses; in addition, all those in the broader community who choose to own Bitcoin as a manner of storing their wealth and transacting peer-to-peer with other law-abiding Texas citizens shall always feel free and safe in their ownership and use of Bitcoin in the state of Texas.