Texas Passes Strategic Bitcoin Reserve Bill, Setting the Stage for the State to Become the First in the U.S. to Officially Hold Bitcoin

Texas is making headlines again, and this time it's not about energy or barbecue. The state's lawmakers have voted to create a strategic Bitcoin reserve

Texas House lawmakers have voted to create a strategic Bitcoin reserve, setting the stage for the state to become the first in the U.S. to officially hold Bitcoin as part of its financial strategy.

The bill, known as Senate Bill 21 (SB 21), was approved by a vote of 101 to 42 and now heads to Governor Greg Abbott for his signature. It had already passed the Senate earlier this year.

The proposal, which was largely authored by Senator Bill Bragg and Representative Giovanni Capriglione, would establish the Texas Bullion Depository Reserve Fund. This fund would allow the state to invest in Bitcoin and other digital assets, which are defined in the bill as having a 24-month average market cap of at least $500 billion.

The fund would be overseen by the state comptroller and kept separate from Texas’ main treasury. It would also be used to hedge against economic difficulties and serve as a countercyclical savings vehicle.

Funding for the Bitcoin reserve could come from a few different places. The state legislature could allocate money directly, and Texans themselves could contribute through private donations.

However, only Texas residents would be allowed to donate, which is an addition that lawmakers made after removing it earlier in the session.

The bill also includes a system for keeping lawmakers and the public informed. The comptroller would need to submit a report every two years detailing what assets the reserve holds, how they’re being managed, and whether any of it has been sold or reallocated. An advisory committee would help guide the strategy.

Lawmakers behind the bill say this is about preparing for a future where Bitcoin and other digital assets play a bigger role in finance.

“This is about giving our state the tools it needs to stay one step ahead in an ever-changing economic landscape,” said Capriglione, one of the bill’s sponsors.

Texas already has a reputation as a Bitcoin-friendly state. It’s home to large-scale mining operations and has generally welcomed crypto companies with open arms. Adding Bitcoin to the state’s own balance sheet might feel like the next logical step.

Earlier this year, New Hampshire passed its own Bitcoin reserve legislation. At the federal level, President Trump signed an executive order in March that created a Strategic Bitcoin Reserve using coins seized in criminal investigations.

So while Texas might not be the first government entity to hold Bitcoin, it would definitely be the biggest U.S. state to take the plunge.

Now it’s up to Governor Greg Abbott, who has 20 days to either sign the bill into law or veto it.

While he hasn't said anything specific about SB 21, Abbott has supported Bitcoin and blockchain innovation in the past. It makes many people think he’s likely to give it the green light.

If he does, Texas won't just be mining Bitcoin. It'll be holding it too.

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Key Takeaways

* The Texas House has approved a bill that would create a strategic Bitcoin reserve for the state.

* The bill, SB 21, passed with a vote of 101 to 42. It now heads to Governor Greg Abbott for his signature.

* The reserve would be funded by the state legislature or private donations from Texas residents.

The post Texas House Approves Bill To Create Strategic Bitcoin Reserve appeared first on 99 Bitcoins.

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