Texas is close to establishing a strategic Bitcoin (BTC) reserve

Legislation aimed at establishing a strategic Bitcoin reserve passed Texas' House of Representatives in a vote of 101 to 42.

Texas has come one step closer to establishing a strategic Bitcoin (BTC) reserve after the U.S. state’s legislature approved a bill that would create one.

What Happened: Legislation aimed at establishing a strategic Bitcoin reserve passed Texas' House of Representatives in a vote of 101 to 42. The bill now moves to a vote in the Texas Senate before being passed onto Governor Greg Abbott's desk, where it is expected to be signed into law.

Texas would become the second U.S. state to establish a strategic Bitcoin reserve after New Hampshire did so earlier this year. Senate Bill 121 would establish a "Texas Strategic Bitcoin Reserve for the purpose of investing in cryptocurrency and the investment authority of the comptroller of public accounts over the reserve and certain other state funds."

While there is enthusiasm for Bitcoin reserves, many lawmakers and economists say investing in cryptocurrencies with public money is risky and could put state pension funds in danger.

In Arizona, legislation to create a strategic Bitcoin reserve made its way to the desk of Governor Katie Hobbs, who then vetoed it saying that Bitcoin is an "untested investment."

At the federal level in Washington, D.C., lawmakers and the administration of U.S. President Donald Trump continue to debate and examine the merits of a strategic Bitcoin reserve. BTC recently hit a new all-time high above $111,000 and is currently trading at $109,800.

Is BTC A Buy?

Most Wall Street firms don't offer ratings or price targets on Bitcoin, so we'll look instead at its three-month performance. As one can see in the chart below, the price of BTC has risen 13.52% in the last 12 weeks.

Chart: Benzinga Pro