Texas Senate Unanimously Approves Bitcoin Reserve Bill
1min read The Texas Senate Committee has unanimously approved the Bitcoin Reserve Bill SB-21, paving the way for the state to manage Bitcoin and digital investments for financial stability. The bill, which passed with a 9-0 vote, allows the Comptroller of Texas to direct Bitcoin and other digital investments, enhancing the state's financial resilience.
The Bitcoin Reserve Bill SB-21, introduced by State Sen. Charles Schwertner, aims to create a separate fund for the state's cryptocurrency investments, providing investment flexibility. The bill allows for contributions from legislative appropriations, dedicated revenues, purchased cryptocurrencies, investment earnings, and donor contributions. To maintain focus on well-established cryptocurrencies, the bill requires purchased digital assets to have an average market capitalization of at least $500 billion over the past year.
The bill grants the Texas Comptroller the authority to operate in asset acquisition, selling, and managing assets within the reserve. Independent certified public accountants will conduct audits to ensure proper management, and the comptroller can contract third parties for financial administration. An advisory committee, combining the comptroller with cryptocurrency investment specialists, will advise on asset assessment methods and investment strategies.
Texas is not alone in considering the establishment of a Bitcoin reserve. In February, over 20 states made legislative moves to dedicate funds from the public budget to Bitcoin and other digital currencies. Oklahoma, Arizona, and Utah have presented legislation to diversify their financial investments, with Oklahoma's Bitcoin reserve legislation moving forward in the House committee and Arizona's Senate Finance Committee approving up to 10% cryptocurrency investments for public funds. Utah state legislators have introduced measures allowing their treasurer to distribute digital assets from existing public funds up to a 5% maximum threshold.
Supporters of the SB-21 bill argue that creating a Bitcoin reserve serves as a protection mechanism against inflation and economic instability. Texas State Senator Charles Schwertner maintains that Bitcoin's strong strategic value boosts the state's financial stability. The proposed bill establishes that forming such a reserve fulfills the public function of bolstering the financial security of Texas residents.
