Texas Bitcoin Reserve Bill Advances

Texas Bitcoin Reserve Bill Clears Key Hurdle

Texas is inching closer to establishing a state-managed Bitcoin reserve. Senate Bill 21 (SB 21), the Texas Strategic Bitcoin Reserve and Investment Act, has successfully passed a crucial second reading in the Texas House of Representatives. This significant step brings the bill closer to a final floor vote and potential enactment.

Key Developments:

• SB 21 passed the Texas Senate on March 6th with a 25-5 vote.
• It then cleared the House Committee on May 7th with a 9-4 vote, without amendments.
• The bill's second reading in the House marks a key milestone before the final floor vote, expected soon given the legislature's upcoming adjournment.

Dennis Porter, CEO of the Satoshi Action Fund, emphasized the importance of this second reading, stating it's a necessary step before the final vote, given the Texas legislature's impending adjournment in under two weeks. This highlights the urgency surrounding the bill's passage.

What SB 21 Entails:

Authored by Senator Charles Schwertner and sponsored by Representative Giovanni Capriglione, SB 21 authorizes the state of Texas to purchase, hold, and manage Bitcoin as part of a government-run reserve. The bill aims to utilize Bitcoin as a strategic financial asset to mitigate inflation and economic instability, enhancing the state's long-term financial resilience.

Funding for the reserve will come from a combination of legislative allocations, investment returns, and voluntary contributions from Texas residents. It will also include any Bitcoin or eligible cryptocurrencies obtained through forks or airdrops.

The bill establishes rigorous standards for digital asset inclusion: an asset must have maintained a market capitalization of at least $500 billion over the preceding 12 months—a threshold currently met only by Bitcoin.

Implications for Texas and the US:

If enacted, Texas would join New Hampshire and Arizona as the third US state with an official Bitcoin reserve. This move reflects a growing trend of state-level crypto-friendly policies, potentially influencing other jurisdictions. This proactive approach toward Bitcoin adoption emphasizes the digital asset's expanding role in both state and national financial strategies.

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