Texas is one step closer to becoming the third US state with a Bitcoin reserve. A bill allowing the state to invest in cryptocurrencies is heading to a final House vote.
The Texas Bitcoin Bill
The Texas House Committee on Delivery of Government Efficiency just passed Senate Bill 21 (SB 21). This bill, sponsored by Senator Charles Schwertner, would let the state comptroller invest in crypto assets with a market cap of at least $500 billion over the past year. The bill passed easily, 9-4, and will now go to a full House vote. The big question isn’t if
Texas will have a Bitcoin reserve, but how much Bitcoin they’ll buy.
Initially, the bill had a $500 million annual purchase limit and stricter rules. But the revised version removes that limit and opens it up to other cryptocurrencies that meet the $500 billion market cap requirement. The final House vote is expected before the Texas legislature adjourns on June 2nd. If it passes, it goes to the governor for approval or veto.
The US Bitcoin Reserve Race
Texas isn’t alone in exploring crypto reserves. New Hampshire and Arizona have already joined the game. New Hampshire now allows up to 5% of public funds to be invested in digital assets (like Bitcoin) and precious metals. Arizona’s approach is a bit different; their new law lets the state put unclaimed assets, airdrops, and staking rewards into a crypto reserve. This is significant because the governor previously vetoed a more ambitious bill that would have allowed investment of up to 10% of public funds into Bitcoin, citing concerns about the asset’s volatility. However, another, less ambitious Bitcoin reserve bill is currently awaiting her signature.
