Texas Lawmakers Refile Bitcoin Reserve Bill, Expanding Crypto Investment Scope

Texas lawmakers have refiled a strategic Bitcoin reserve bill, SB 21, with an expanded scope that allows for investments in other qualifying cryptocurrencies. The bill, introduced by Texas state Senator Charles Schwertner, aims to establish the first state-level strategic Bitcoin reserve and drive innovation, growth, and financial freedom.

SB 21 differs from its predecessor, SB 778, by expanding the investment authority of the comptroller of public accounts over the reserve and certain other state funds. The new bill establishes the reserve as an investment vehicle, enabling the state to actively buy, sell, and manage crypto assets for financial security and economic resilience. It also permits investments in other digital assets, provided they have maintained a market capitalization of at least $500 billion for the past twelve months. Currently, only Bitcoin (BTC) meets this criterion.

SB 21 grants more control to financial experts, while SB 778 placed control in the hands of state legislators and had stricter security, oversight, and funding rules. Riot Platforms vice president of research, Pierre Rochard, commented that the new legislative text for the Texas SBR is "very bullish," as it removes the annual buying limit of $500 million, allowing the legislature to appropriate as much as it wants to save BTC.

As of now, 19 US states have proposed bills related to cryptocurrencies, with Arizona and Utah having advanced their legislation beyond the House committee level. The most recent state to propose a crypto bill was North Carolina, which filed legislation this week to allow the state to invest in Bitcoin exchange-traded products. Meanwhile, North Dakota has rejected legislation regarding crypto investments.