Texas is about to become home to the nation’s largest government-held stash of Bitcoin. A bill creating a state-run Bitcoin reserve is on the verge of becoming law.
The Silent Countdown
Senate Bill 21, the Texas Strategic Bitcoin Reserve and Investment Act, passed both the Texas House and Senate with strong support. It’s now up to Governor Greg Abbott to sign it into law. However, there’s a twist: if he doesn’t sign or veto the bill by Sunday, June 22nd, it automatically becomes law. The clock is ticking!
What the Bill Does
This eight-page bill establishes a special fund, the Texas Strategic Bitcoin Reserve, managed by the Comptroller of Public Accounts. Here’s the lowdown:
- Bitcoin Investment: The State Treasurer can invest in Bitcoin and other major cryptocurrencies (those with a 12-month average market cap of at least $500 billion).
- Safekeeping: The comptroller will hire experts to securely store the Bitcoin using cold storage technology. Independent audits will ensure transparency.
- Hedging and Liquidity: The bill allows for using derivatives to manage risk and the temporary sale of Bitcoin to cover urgent state expenses, with a requirement to quickly buy back the coins.
- Advisory Committee: A five-member committee will advise on investment strategies and publish regular reports.
The bill’s supporters see it as a way to protect Texas’s finances from inflation and solidify its position as a leader in the cryptocurrency world.
Texas Joins the Crypto-State Club
If the bill becomes law, Texas will join New Hampshire and Arizona, which have already established their own state-level Bitcoin reserves. This move positions Texas as a pioneer in government cryptocurrency investment.
What’s Next?
Governor Abbott hasn’t publicly commented on the bill, but his office has indicated they’ll review it. All eyes are on Sunday to see if Texas officially enters the world of government-held Bitcoin.
