Texas House Approves Bill for Strategic Bitcoin Reserve

The Texas House of Representatives has approved the third reading of SB 21, a bill aimed at creating a strategic Bitcoin reserve within the state. The bill was passed with a vote of 101-42 and is now awaiting either a signature or veto from Texas Governor Greg Abbott.

SB 21, introduced by state Senator Schwertner, outlines the establishment of a Bitcoin (BTC) reserve managed by the state’s comptroller. The legislation permits the comptroller to invest in any cryptocurrency with a market capitalization exceeding $500 billion over the preceding 12-month period. Currently, Bitcoin is the sole cryptocurrency that meets these criteria.

Prior to the vote, state representative Capriglione addressed the chamber, emphasizing the significance of the bill. He stated that the passage of the strategic Bitcoin reserve marks a "pivotal moment in securing Texas’s leadership in the digital age with the passage of our strategic Bitcoin reserve. Now, we embrace a modern asset with traditional properties for future promise."

This development underscores Texas's proactive approach to integrating cryptocurrencies into its financial strategy. By establishing a Bitcoin reserve, the state aims to leverage the stability and growth potential of Bitcoin, positioning itself as a leader in the digital asset landscape. The bill's passage reflects a broader trend of states exploring the benefits of cryptocurrencies, recognizing their potential to enhance economic resilience and innovation.

The next steps involve Governor Abbott's decision on the bill. If signed into law, SB 21 will formalize Texas's commitment to Bitcoin, potentially influencing other states to consider similar initiatives. The strategic reserve could serve as a model for other regions looking to diversify their financial portfolios and embrace the future of digital assets.