Nikolas Sargeant
The Texas House of Representatives has passed Senate Bill 21 (SB 21), a landmark piece of legislation aimed at establishing a strategic Bitcoin reserve for the state. The bill, which passed with a 101-42 vote, now awaits the signature of Governor Greg Abbott. If enacted, Texas would become the second U.S. state to create such a reserve, following New Hampshire's lead.
SB 21 authorizes the Texas Comptroller to invest in Bitcoin and other eligible digital assets, provided they have a market capitalization of at least $500 billion over the past 12 months. Currently, only Bitcoin meets this criterion. The reserve would be managed as a special fund outside the state treasury, allowing for greater autonomy and flexibility in investment strategies.
Proponents of the bill argue that establishing a Bitcoin reserve would serve as a hedge against economic instability and inflation. They compare Bitcoin to gold, emphasizing its scarcity and resistance to manipulation. However, some lawmakers have expressed concerns over Bitcoin's volatility and potential risks associated with cryptocurrency investments.
Texas Is Becoming A Mecca For Bitcoin Miners.#Bitcoin @Nasdaq @Bitcoin https://t.co/mNaSBG6EIT
— Greg Abbott (@GregAbbott_TX) May 5, 2021
Governor Abbott has previously expressed enthusiasm for cryptocurrency and is expected to sign the bill into law. In a social media post he praised Texas as for becoming a crypto hub. If signed, Texas will join a growing number of states exploring the potential of digital assets in public finance.
