Texas has moved one step closer to becoming the third U.S. state to officially hold Bitcoin in its treasury with the Senate Bill 21 passing its second reading with a majority vote win.
Legislative Momentum and Bipartisan Backing
Senate Bill 21 (SB 21), which proposes the creation of a Strategic Bitcoin Reserve, passed its second reading in the Texas House with an overwhelming 105-23 vote. The bill now awaits a final vote before the legislative session ends on June 2, followed by Governor Greg Abbott’s signature to become law.
The passage of SB 21 marks a significant milestone for Texas in its bid to formalize Bitcoin holdings at the state level. The initiative has enjoyed notable bipartisan support, a rarity in an often-divided political climate. The strong backing suggests widespread political appetite for integrating digital assets into state-level financial strategies.
Raising Eligibility for Altcoins
A pro-crypto policy watchdog noted,
“Texas’ Strategic Bitcoin Reserve bill passes House second reading. SB 21 passed by a vote of 105 – 23. SB 21 was also amended to increase the length of time a digital asset’s market cap is under consideration for inclusion in the bill, from 12 to 24 months…making it harder to qualify.”
This amendment raises the eligibility threshold for altcoins, requiring them to maintain a $500 billion market capitalization for two consecutive years to be considered for inclusion alongside Bitcoin. The adjustment mirrors similar safeguards seen in legislation from New Hampshire, the first U.S. state to successfully pass a Bitcoin Reserve law.
Operational Framework and Market Impact
If passed, SB 21 would authorize Texas’ comptroller’s office to manage the reserve’s Bitcoin holdings, including purchasing, holding, and selling the asset. The bill also earmarks legislative appropriations and other state funds for the reserve’s operation.
The bill’s momentum has already resonated within the cryptocurrency market. In the wake of state-backed interest, Bitcoin’s price has surged to $106,000, approaching its all-time high.
National Trend Toward Bitcoin Reserves
Texas’ initiative aligns with a growing national trend of U.S. states exploring Bitcoin reserves as a hedge against inflation and economic uncertainty. The idea gained traction after former President Donald Trump publicly endorsed state-level Bitcoin holdings, prompting discussions in several states, including South Carolina and Florida.
While Arizona’s governor signed a measure permitting the holding of Bitcoin, subsequent bills enabling actual purchases were vetoed. Florida’s effort also struggled despite early bipartisan enthusiasm. These examples underline the precarious nature of such proposals, highlighting the significance of Texas’s legislative progress.
Final Approval Pending
With clear bipartisan support and a pro-Bitcoin governor in Greg Abbott, Texas’s Strategic Bitcoin Reserve appears well-positioned for final approval. However, given the checkered history of similar bills in other states, the outcome remains cautiously optimistic. A final vote is expected before the legislative session concludes on June 2.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
