Texas Bitcoin Reserve bill advances to third reading
SB 21, Texas’s bill to create a state-level Bitcoin Reserve, has passed its second reading in the House with overwhelming support. It now requires one more vote and Governor Greg Abbott’s signature to become law.
The bill draws inspiration from successful efforts in other states, notably New Hampshire’s model for adding new tokens to its Reserve. Under SB 21, Texas would allow altcoins to be included only if they maintain a market capitalization of at least $500 billion for a continuous period of two years.
Texas is rapidly headed to form its own Strategic Bitcoin Reserve. Legislators voted resoundingly to advance the bill. This legislation hopes to see Texas become the third state to own and operate a state-funded Bitcoin Reserve in the United States.
The third and final reading would come next, and experts said that was likely to pass easily.
SB 21 passes second reading with strong bipartisan support
Upon its second reading, the bill, also called Senate Bill 21 (SB 21), received overwhelming bi-partisan support. The vote was 105 to 23. This demonstrates clear partisan agreement.
SB 21 would allow Texas to join the handful of states that already hold Bitcoin by authorizing the Texas Comptroller of Public Accounts to operate a state-owned Bitcoin Reserve. The fund will strategically invest taxpayer funds in Bitcoin to create a diversified financial portfolio for Texas, including digital and regular assets.
To preserve the state’s investment, the reserve will be limited to digital assets with a market capitalization of over $500 billion held for at least two years, meaning only stable and established cryptocurrencies will qualify.
The reserve’s operation will be funded through appropriations by the Legislature and other state funding sources. The comptroller’s office, which under the law is also guided by the city’s finance department and the Office of Management and Budget, will be the trustee of the currency and will purchase, hold, and sell Bitcoin on behalf of the reserve.
Texas joins New Hampshire and Arizona in establishing state Bitcoin Reserve
Texas is on its way to being the third state to create an official Bitcoin Reserve after New Hampshire and Arizona. This is just one example of an emerging trend in the US as more states turn to Bitcoin to help fortify their finances.
Popularity has been rising for the initiative to hold Bitcoin after President Donald Trump suggested it was a good idea for states to hold Bitcoin; parties such as the South Carolina GOP found this a good time to ask followers to give their opinions. Supporters believe holding Bitcoin can enable states to hedge against inflation and economic instability.
The cryptocurrency market has already felt the impact of news of the bill. Amid the state-backed interest in Bitcoin Reserves, the asset price has soared to $106,000, targeting an all-time high.
Confidence in Bitcoin and state-led digital asset initiatives is steadily increasing. While primarily a Bitcoin Reserve, SB 21 also includes other digital assets—provided they maintain a market capitalization of $500 billion or more for at least 24 months.
Texas set to approve Bitcoin Reserve as global interest surges
The bill now heads to the desk of Texas Governor Greg Abbott, who is expected to sign it. Abbott has previously expressed support for cryptocurrency projects and is widely expected to sign SB 21 into law.
Following Trump’s signing of the Bitcoin Reserve into law, interest in similar initiatives has surged to unprecedented levels. States like Utah, Oklahoma, and Kentucky are inching forward with their versions of a bill to join the industry as early movers.
A Ukrainian lawmaker has unveiled plans to introduce a Strategic Bitcoin Reserve bill to be the first in the EU. However, the move has garnered Binance’s support, with the exchange poised to become a strategic partner for Ukraine’s Bitcoin ambitions.
Additionally, Conor McGregor has plans to launch an Irish Strategic Bitcoin Reserve for the European country. The former UFC fighter has also scheduled a meeting with El Salvador President Nayib Bukele to support a nationwide Bitcoin accumulation strategy.
UFC fighter turned Irish political hopeful Conor McGregor has endorsed building a Bitcoin Reserve in his country to give more “power back to the people.”
“Crypto in it’s origin was founded to give power back to the people. An Irish Bitcoin strategic reserve will give power to the people’s money,” McGregor wrote to X on May 9.
He wants the Irish people to have a stake in this exciting venture. This suggestion immediately appealed to President Nayib Bukele, who is using aggressive tactics of purchasing Bitcoin for his country and disregarding any institutions that are hesitant in doing so
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