Texas Governor Greg Abbott has signed a bill into law to create a strategic bitcoin reserve for the Lone Star State.
Texas has become the third US state to officially create a strategic bitcoin reserve with the historic signing of SB 21 into law. Armed with the newly enacted law, the state of Texas will purchase and hold bitcoins through the state comptroller's office.
Texas Creates Strategic Bitcoin Reserve into Law
Reports emerging from Satoshi Act Fund CEO Dennis Porter indicate that Texas Governor Greg Abbott has signed the Bitcoin Reserve Bill into law. The signing formally creates a strategic bitcoin reserve for the Lone Star State, ending a lengthy legislative process.
Back in May, Texas senators passed the Strategic Bitcoin Reserve bill on third reading by a 101-42 vote. The latest development sees the pro-Bitcoin governor signing the bill after a run of legislative horse-trading.
First, the new law establishes a state-level Bitcoin Reserve, giving the Texas Comptroller of Public Accounts the authority to invest in cryptocurrency.
Additionally, the SB 21 bill, signed into law, designates the reserve as a special fund outside the state treasury, which supports cryptocurrency investments.
The new law provides that the Comptroller must keep BTC in cold storage for at least five years before selling it. A five-member advisory committee will be constituted and will publish a report on the holdings every two years.
Sources of funding for the Reserve will include voluntary donations and legislative appropriations. However, bitcoin critic Peter Schiff has poked holes in the new law, claiming that the state would be barred from buying $BTC if prices fall.
“The bad news for Texas is that the bill establisshing a state-run strategic Bitcoin reserve was signed just signed into law,” said Schiff. “The good news is that once the market capitalization of Bitcoin falls below $600 billion, the state will be legally prohibited from buying any more.”
US states are moving towards the offer.
Texas joins Arizona and New Hampshire as strategic bitcoin reserve offering However, a growing number of states are making deep strides to pass bills authorizing creation.
At last count, more than 24 states have introduced bills to establish strategic bitcoin reserves, including Utah, Illinois and New Mexico.
Others include Ohio, Pennsylvania, Alabama and Iowa, with a handful of states rejecting the proposals. Amidst the push, Ohio has exempted bitcoin tax on payments of less than $200, which guarantees the right of self-custody and authenticates transactions.
States are following the White House's lead to enact their own versions of the Strategic Reserve and other Bitcoin-friendly legislation. Representative Tim Burchett has introduced a House bill to turn Trump's executive order into law for the Strategic Bitcoin Reserve.
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