Texas Governor Abbott Backs Bill for State Bitcoin Reserve

Texas Governor Greg Abbott has expressed his backing for a bill that seeks to create a strategic cryptocurrency reserve within the state. The bill, Senate Bill 21, has successfully cleared the state's legislative hurdles and is now awaiting the governor's signature to be enacted into law. If signed, Texas would become the second U.S. state to hold Bitcoin as a strategic asset, following other states that have shown interest in incorporating cryptocurrencies into their financial strategies.

The bill, which passed its crucial House vote and third reading, includes an amendment that would empower the state Comptroller to oversee the Bitcoin reserve. This move is seen as a significant step towards the institutional adoption of Bitcoin at the state level. Governor Abbott's support for the bill was evident when he shared a news article covering its progress on May 23, further solidifying his stance on the matter.

Industry insiders view Abbott's actions as strong support for a state-managed Bitcoin reserve. The bill's passage through the legislature and the governor's indication of support suggest that Texas is positioning Bitcoin as a strategic asset. This development could set a precedent for other states to follow, potentially leading to a broader acceptance of cryptocurrencies in government financial strategies.

The strategic Bitcoin reserve would be managed by the state Comptroller, ensuring that the state's holdings are secure and managed responsibly. This move is part of a broader trend of states exploring the use of cryptocurrencies as a means of diversifying their financial portfolios and hedging against economic uncertainties. The bill's passage and the governor's support highlight Texas's proactive approach to embracing new financial technologies and its commitment to staying at the forefront of innovation.

Governor Abbott has previously referred to himself as a “crypto law proposal supporter” and suggested that he would support policies to establish Texas as a “crypto capital” in 2024. Texas was one of a handful of state-level governments that proposed setting up a strategic crypto reserve after the 2024 federal elections. This latest development aligns with Abbott's previous statements and underscores his commitment to advancing cryptocurrency initiatives within the state.

At the federal level, President Donald Trump signed an executive order in March for a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile,” but Congress had not codified the order as of May 23. Wyoming Senator Cynthia Lummis has led efforts in the chamber to pass the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide, or BITCOIN, Act, reintroduced a few days after Trump’s EO. As of March 11, the bill has been referred to the Senate Banking Committee, and it was unclear if or when the chamber would consider a vote. The Senate will likely first move forward with debate on a bill to regulate payment stablecoins, the GENIUS Act, with some lawmakers anticipating a vote by Memorial Day, May 26.