Texas House Passes Bitcoin Reserve Bill, State to Become the Second to Create Such a Fund

With the Texas House of Representatives passing groundbreaking legislation to establish a Bitcoin BTC $96 611 24h volatility: 2.1% Market cap: $1.92 T Vol. 24h: $29.09 B reserve, Texas is set to become the second state to create such a fund.

Key Notes:

* The Texas House of Representatives has passed legislation to create a Bitcoin reserve.

* The bill, Senate Bill 21, was approved in the third reading by the House with a vote of 101-42.

* The bill now awaits a concurrence vote on House amendments before being sent to Governor Greg Abbott.

* The Senate passed the bill in the second reading with a vote of 25-5.

* The bill will allow Texas to hold cryptocurrency reserves for assets with a market capitalization exceeding $500 billion.

* Currently, only Bitcoin meets this criterion.

* Supporters say the move will enable the state to benefit from holding Bitcoin and become a leader and innovator in the financial sector.

* The bill also states other guidelines that must be followed before the state’s funds are used in crypto investment.

* If passed, the Bitcoin reserves will be overseen by the state’s comptroller.Crypto Reserves in the U.S States

* New Hampshire became the first U.S. state to establish a Bitcoin reserve.

* Other states like Florida and Arizona attempted similar initiatives but were met with resistance.

* The Arizona governor has rejected the Senate Bill 1373 that would have seen the creation of a BTC reserve in the state and allowed the treasury to use up to 10% of state’s funds to hold cryptocurrency.

* The governor thought it was unwise to use taxpayers’ money to buy cryptocurrency.

* However, the governor did allow the creation of Bitcoin ATMs in the state.

* The legislation provides strict guidelines that must be followed by operators to best serve and protect users.