Texas Advances Bitcoin Reserve Bill, Awaits House Vote

Texas has taken a significant step towards establishing a Bitcoin reserve with the passage of Senate Bill 21 (SB 21) through the House Committee on Delivery of Government Efficiency. The bill, which proposes the creation of a Texas Strategic Bitcoin Reserve, was approved with a 9-4 vote, aligning with party lines. This development follows the bill's approval by the Texas Senate in March and sets the stage for a full floor vote in the House. If SB 21 is passed, it will proceed to Governor Greg Abbott, who has been a vocal supporter of cryptocurrencies and has expressed his vision to position Texas as the "crypto capital" of the U.S.

Filed by Republican Senator Charles Schwertner in January, SB 21 initially focused exclusively on Bitcoin. However, it was later amended to include other digital assets with a market capitalization of $500 billion or more, a threshold that currently applies only to Bitcoin. The reserve would be managed by Texas Comptroller Glenn Hegar. The next steps for SB 21 involve a full vote by all members of the Texas House and, if successful, the governor's signature. The legislative session is set to conclude on June 2, adding urgency to the process.

Texas is not alone in its pursuit of a state-level Bitcoin reserve. Arizona has already established a Bitcoin and Digital Asset Reserve Fund, allowing the state to stake unclaimed crypto and earn staking rewards. Similarly, New Hampshire has passed legislation permitting the state treasury to invest in top cryptocurrencies with a market cap exceeding $500 billion, which currently includes only Bitcoin. These developments highlight a growing national interest in integrating digital assets into state financial strategies.

While some states are embracing cryptocurrencies, others remain cautious. Florida, for instance, recently withdrew two Bitcoin reserve bills from its legislative schedule, despite passing numerous other measures. This mixed reaction underscores the complex and evolving nature of cryptocurrency legislation across the U.S. The final decision on SB 21 in Texas will be closely watched, as it could set a precedent for other states considering similar measures. The outcome will not only impact Texas's financial strategy but also influence the broader conversation about the role of digital assets in state treasuries.