Texas has moved closer to establishing a Strategic Bitcoin Reserve (SBR), potentially making it the third state in the US to hold crypto assets. This follows Arizona and New Hampshire, both of which approved SBR bills recently.
Decision on Texas Bitcoin Reserve By June 2
On Wednesday, the Texas House Committee on Delivery of Government Efficiency (DOGE) pushed Senate Bill 21 (SB 21) forward, marking a key step in its legislative journey.
The bill, introduced by State Senator Charles Schwertner, seeks to create the Texas Strategic Bitcoin (BTC) Reserve, giving the state’s comptroller the authority to invest in cryptocurrencies with a market cap of at least $500 billion over the past year.
The committee passed SB 21 with a 9-4 vote, making its way to the House floor for a final vote. The bill had previously gained significant support in the Texas Senate, passing with a 25-5 vote two months ago.
Pierre Rochard, CEO of The Bitcoin Bond Company, noted that Texas is likely to establish an SBR, but raised concerns about the amount of BTC that might be acquired.
Earlier this year, Senator Schwertner introduced a version of the bill as SB 778, which included a $500 million annual limit on BTC purchases and stricter oversight. The current SB 21 removes the cap and broadens investment options to other cryptocurrency assets meeting the $500 billion criterion.
Julian Fahrer, founder of Bitcoin Laws, predicted that the outcome of SB 21 would likely be known within three weeks, as the Texas legislature is set to adjourn on June 2. If approved, it will go to the governor for final approval or veto.
Competition in the US for SBRs
Texas is following in the footsteps of New Hampshire and Arizona, the first two states to adopt a Strategic Bitcoin Reserve. New Hampshire Governor Kelly Ayotte recently signed House Bill 302 (HB 302), allowing the state to invest up to 5% of its public funds into digital assets valued at a minimum of $500 billion, including BTC and precious metals.
Arizona’s Governor Katie Hobbs also signed House Bill 2749 (HB 2740), effectively creating the state’s initial crypto reserve. This legislation does not permit direct investments but allows unclaimed assets, airdrops, and staking rewards to be stored in a reserve, as reported by Bitcoin Laws.
According to the policy tracking platform this signifies Governor Hobbs’s willingness to pursue pro-crypto policies after previously vetoing Senate Bill 1025 (SB 1025).
Hobbs had vetoed the proposed “Arizona Strategic Bitcoin Reserve Act,” citing concerns that cryptocurrencies were too “untested” for retirement funds. That bill proposed to allow public funds in Arizona to invest up to 10% of their managed assets in cryptocurrencies, focusing on BTC.
The recent moves toward crypto-friendly legislation are crucial, as another SBR proposal, Senate Bill 1373 (SB 1373), which does not involve retirement fund investments, is now awaiting her approval after passing the final Senate vote 17-11 on May 6.
