Texas Advances Bitcoin Reserve Bill Awaiting Governor's Signature

The Texas Strategic Bitcoin Reserve Bill (SB 21) has cleared its second reading in the House, advancing significantly towards final approval. This bill aims to establish a state-level Bitcoin Reserve, allowing Texas to invest in Bitcoin as part of its financial strategy. With the Senate already supportive, the bill now awaits the governor’s signature to become law. This development marks a pivotal moment in the state's embrace of cryptocurrency, positioning Texas as a key player in the growing trend of state-level Bitcoin adoption.

The bill sets the legal framework for Texas to invest in Bitcoin, although it does not specify the exact amount the state will purchase. The Texas Blockchain Council has highlighted that the bill is scheduled for a final vote in the House, which, if passed, will be a historic move towards Bitcoin adoption at the state level. Texas is following a national trend set by President Trump, who has called for a national Bitcoin reserve. However, other states like New Hampshire and Arizona have already passed similar measures, indicating a broader movement towards cryptocurrency integration at the state level.

Lee Bratcher of the Texas Blockchain Council noted that while SB 21 establishes the reserve, separate legislation is being prepared to determine the exact amount of Bitcoin the state will allocate to the fund. This decision remains pending, but if signed into law, Texas could become a major player in government-backed Bitcoin investments, further solidifying its pro-crypto stance. The bill's passage would make Texas the third U.S. state to approve such legislation, following New Hampshire and Arizona. Similar bills in other states, such as Montana, Wyoming, and Oklahoma, indicate a broader trend towards state-level cryptocurrency reserves.

The bill's advancement does not guarantee its success, as the legislative session ends on June 2, and SB 21 needs to pass a final vote by then to establish a Bitcoin Reserve. However, the bill's overwhelming support is encouraging, and the final step could take place this week. Governor Greg Abbott, a long-time Bitcoin supporter, is expected to sign the bill into law. The success of the GENIUS Act, despite fierce opposition, highlights the strong political support for the crypto industry. However, past incidents in other states show the importance of not taking anything for granted, despite optimistic signals. Most state Bitcoin Reserve proposals have failed so far, and Texas' SB 21 would be one of the very few survivors if it succeeds.

If the bill is signed into law, the Texas Comptroller will oversee the reserve, with guidance from an advisory committee. The bill permits altcoins that maintain a $500 billion market cap for two entire years, ensuring the stability and longevity of the assets included in the reserve. This provision makes it harder for new tokens to qualify, aligning with the state's strategic approach to cryptocurrency investment. The bill's passage would have profound implications for cryptocurrency adoption and regulation, signaling a growing acceptance of Bitcoin as a strategic asset among U.S. states.