Texas advances strategic Bitcoin reserve bill

A bill to establish a Texas Strategic Bitcoin Reserve has advanced through a key House committee and is headed for a full floor vote.

On May 7, the Texas House Committee on Delivery of Government Efficiency approved Senate Bill 21 in a 9-4 vote, clearing one of the final hurdles before it can land on Governor Greg Abbott’s desk.

Initially introduced by Republican Senator Charles Schwertner in January as a Bitcoin (BTC) only proposal, SB 21 was later refiled in February to allow for other digital assets with a minimum $500 billion market cap over the past 12 months. Bitcoin is currently the only digital currency to meet this criterion.

If passed into law, the bill would allow the state comptroller to manage the reserve and invest state funds in eligible crypto assets.

The bill had previously passed the Texas Senate on March 6 with a 25-5 vote.

According to data from Bitcoin legislation tracker Bitcoin Laws, SB 21 is not the only crypto-related legislation Texas lawmakers have introduced this year. 

In March, HB 4258 was proposed to permit the state comptroller to invest up to $250 million of the Economic Stabilization Fund into Bitcoin or other cryptocurrencies.

Meanwhile, SB 778, introduced in February this year, focuses on accepting taxes and donations in crypto and imposes a minimum five-year holding period for any Bitcoin acquired by the state.

Texas isn’t alone in exploring Bitcoin reserves. A day before SB 21 passed the committee in Texas, Arizona Governor Katie Hobbs signed HB 2749 into law, creating a Bitcoin and Digital Assets Reserve Fund funded by unclaimed digital assets.

On the same day, New Hampshire Governor Kelly Ayotte signed HB 302, making it the first state to legally authorize public fund investment in Bitcoin and other qualifying assets. Up to 10% of the state’s general fund can now be invested in digital assets exceeding a $500 billion market cap, again effectively limiting it to Bitcoin.

Currently, 37 strategic Bitcoin reserve bills are under review across 18 U.S. states. The number was initially higher, but many proposals have failed to gain legislative support.

Florida became the latest to shelve its Bitcoin reserve plans on May 6, joining Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma, all of which saw similar bills rejected in recent House or Senate votes.