A Texas House Committee has successfully passed a Republican-backed bill aimed at establishing a Bitcoin reserve, marking a significant development in cryptocurrency legislation within the state. This bill, Senate Bill 21, now awaits a full floor vote before it can proceed to Governor Greg Abbott’s desk.
The Texas House Committee on Delivery of Government Efficiency approved the bill on May 7 with a vote of 9-4, strictly along party lines. Previously, the Texas Senate passed the same bill on March 6 with a vote of 25-5. If enacted, SB 21 would create the “Texas Strategic Bitcoin Reserve,” which would be managed by the state’s comptroller, Glenn Hegar. This reserve would allow Texas to invest in digital assets, specified to include Bitcoin, provided such assets have maintained a market cap of at least $500 billion over the preceding year.
This initiative was initially introduced as a Bitcoin-only measure by Republican Senator Charles Schwertner in January. However, the bill was later amended to encompass other digital assets, reflecting the evolving legislative landscape surrounding cryptocurrencies.
Julian Fahrer, founder of Bitcoin Laws, emphasized on social media that the fate of SB 21 should be determined before the Texas legislature adjourns on June 2. If the bill passes the full floor vote, it will move to Governor Abbott, who has expressed his ambition to position Texas as the “crypto capital” of the United States.
Texas and Beyond: A State-Level Shift in Cryptocurrency Policy
Coinciding with Texas’s legislative activity, Arizona Governor Katie Hobbs has signed a similar bill into law, allowing the state to retain unclaimed cryptocurrency and create a Bitcoin and Digital Asset Reserve Fund without utilizing taxpayer funds. This strategic move opens avenues for states to generate additional revenue from abandoned crypto assets through staking and airdrops.
On a related note, New Hampshire has also joined the ranks by enacting House Bill 302, which permits the state treasury to invest in cryptocurrencies with market caps exceeding $500 billion. In contrast, Florida has opted to remove two Bitcoin reserve bills from consideration, possibly indicating a more cautious approach to cryptocurrency legislation.
The legislative activities across multiple states signify a growing trend towards integrating digital assets into official state financial strategies, reflecting both the increasing acceptance and recognition of cryptocurrency as a legitimate form of investment and reserve asset.
This evolving legislative framework will be crucial to watch as other states may follow suit, potentially reshaping the landscape of cryptocurrency regulation and investment in the United States.
