- Senate Bill 21 moves forward, allowing public fund investments in Bitcoin.
- Texas considers bills to integrate crypto into finance, including tax and investment use.
- Eighteen states explore similar Bitcoin reserve bills, though many face delays or rejections.
The Texas lawmakers have pushed the Texas Strategic Bitcoin Reserve legislation past a significant legislative hurdle. On May 7, the Texas House Committee on Government Efficiencyz and Delivery gave its approval to the Senate Bill 21 by passing it with a 9-4 vote leaving the full House opportunity to debate on the measure within the next few days.
First introduced in January by the Republican Senator, Charles Schwertner, the bill was reintroduced in February after the updated criteria. It authorizes the Texas state comptroller to invest funds from the government in the Bitcoin and other digital assets that are in the upper market capitalization of at least $500 billion in the previous year. The only cryptocurrency that satisfies the bill’s conditions is the Bitcoin.
Bill Clears Committee Following Senate Approval
The Texas Senate passed the cantata on a 25-5 vote on March 6. It is one pylon being lawfully adopted since sent by the House committee to Governor Greg Abbott’s office for an end look. It will pass into law if it does, meaning the reserve of Texas Strategic Bitcoin would be licensed with the Texas Comptroller regulating and managing investments in qualified digital assets.
The bill passage also shows increasing interest from Texas legislators to mainstream digital currencies in the state level financial strategy. And while the original bill used to concentrate only on Bitcoin, the revised one provides an entry point for other large-scale digital assets even though Bitcoin remains the only one to be qualified at the present.
Other Crypto-Related Legislation in Texas
The Bitcoin provisions being discussed in Texas this year are the Senate bill 21 and the House bill 4258 introduced in march this year. Both of the bills also presupposed that the state comptroller could invest up to 250 million in Bitcoin or any other digital currency in the Economic Stabilization Fund.
Beyond that, in February, there was another proposal, Senate Bill 778, which deals with the use of cryptocurrency for tax payments and for donations. It also sets a supporting 5-year holding period for any Bitcoin the state procures. These legislative attempts are part of a larger plan to modernize the way Texas monitors its financial holdings, positioning it as one of the potential leaders when it comes to public sector crypto adoption.
Growing National Trend Toward Bitcoin Reserves
Texas is not the only state involved in a broader national trend of introducing such legislation, as other states are introducing similarly restrictive measures. On May 6, the Arizona House of Representatives passed HB 2749, which was signed into law by Governor Katie Hobbs and established a state Bitcoin and Digital Assets Reserve Fund. Unascertained digital assets will subsidize the fund.
HB 302 was such a call on the part of New Hampshire’s governor, Kelly Ayotte, who authorized the Bill on the same day, making New Hampshire the first state in America where public investments in bitcoins and other digital assets of more than 500 billion were permitted.
Investment in such assets is allowed up to 10 percent of the state’s general fund under the law. Today, there are more than 37 strategic Bitcoin reserve bills that are under consideration in 18 states across the U.S., but the majority of them are on hold. On May 6, in the state of Florida, the efforts were stopped due to parallel results in other states.
