Texas Legislature Passes Bitcoin Reserve Bill

Texas has handed Senate account 21A measure that attracts up the Texas Strategic Bitcoin reserve. This makes Texas the third US state to rent Bitcoin as a part of his nationwide funding technique, in line with Arizona and New Hampshire. The invoice, formally entitled The “Texas Strategic Bitcoin Reserve and Funding Act”, has launched each legislative rooms and is now going to Governor Greg Abbott’s workplace for definitive approval.

SB21 authorizes the institution of the Texas Strategic Bitcoin Reserve, a particular fund outdoors the state treasury, with which Texas can make investments straight in Bitcoin and different authorized cryptocurrencies in line with laws. The measure provides the treasurer of the State full authority on the administration of the reserve, together with the acquisition, administration, deployment and risk of liquidating digital property.

“The institution of a strategic Bitcoin reserve serves the general public objective to supply improved monetary safety to residents of this state,” explains laws.

The State treasurer will handle the fund beneath strict situations:

• Solely cryptocurrencies with a median market capitalization of 12 months of at the very least $ 500 billion might be bought.
• Property should be saved utilizing “chilly storage” expertise to stop unauthorized entry.
• Third -party companions, together with certified preservators and liquidity suppliers, might be contracted for actions.
• The usage of deportation and derivatives is permitted if it advantages the reserve.

Funds can come from legislative loans, donations from residents of Texas and return on investments. Though the reserve is independently energetic, the treasurer of the State can quickly liquidate this for state administration beneath restricted circumstances.

Governor Abbott has not but indicated whether or not he’ll signal the invoice, however his assist prior to now suggests {that a} favorable result’s doubtless.

“Texas will get concerned on this course of early as a result of we see the way forward for what Bitcoin and Blockchain means for the entire world,” mentioned Governor Abbott in a interview. “Texas needs to be the middle of that. So we put it on the market, we’re going forward.”

When New Hampshire authorized their account on Could 6, 2025, CEO and co-founder of Satoshi Motion Dennis Porter observed that it was just the start and now we see that imaginative and prescient unfolded.

“Satoshi Motion has drawn up the mannequin, New Hampshire has engraved it within the regulation, and now each treasurer can comply with that route map nationwide,” Dennis Porter mentioned on X. “HB 302 proves you could shield tax cash, reserves and future-proof state forces can diversify all of all whilst you embrace essentially the most secure financial community on earth. New Hampshire has not solely handed on a invoice; it led to a motion.”