Texas is on the verge of becoming the first U.S. state to establish a strategic cryptocurrency reserve, one step away from creating a Bitcoin reserve: Senate approves bill.
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Texas Senate approves the bill for a strategic Bitcoin reserve.
Legislative proposal SB 21 now moves to the House of Representatives for a vote.
Texas could become the first U.S. state to hold Bitcoin.
Trump is expected to make a key announcement about these national plans tomorrow, Friday.
Texas is just a few steps away from becoming the first U.S. legislation to launch a Bitcoin reserve.
The Texas Senate has just passed the Texas Strategic Bitcoin Reserve Bill (SB 21) in a historic session. The bill, which proposes creating a state reserve of Bitcoin as a financial safeguard with the intention of reinforcing Texas's role in digital asset innovation, moved forward with 25 votes in favor and 5 against, according to reports.
The historic approval means that the bill now moves to a vote in the state House of Representatives.
The advancement comes after the Texas Senate Business and Commerce Committee unanimously approved the bill proposal last week. Bill SB 21 had been placed on "intent notice" by the legislative body on Wednesday.
Texas Representative Giovanni Capriglione had introduced the bill proposal in December in an effort to position the state at the forefront of what appears to be a new era for digital currencies in the United States. The reserve is designed to serve two key purposes, as detailed in the bill document SB 21:
The reserve is established to allow: (1) this state to own and maintain bitcoin as a financial asset; and (2) individuals, including residents of this state, to donate bitcoin to the state to deposit it in the reserve and promote shared ownership and community investment in the future financial well-being of this state.
The proposal aligns with the vision of incoming President Donald Trump, who, during his 2024 election campaign, raised the need for the U.S. to take a leadership position in emerging sectors such as cryptocurrencies, suggesting the potential creation of a strategic Bitcoin reserve at the federal level.
Texas on track for a Bitcoin reserve.
If the representatives approve legislation SB 21, the next step for its official implementation will be for the state governor, Gregory Wayne Abbott, to sign or veto it. Texas would then proceed to purchase Bitcoin for its state treasury.
Funding for Bitcoin purchases by the state legislature would be limited to 1% of the state's unallocated general fund balance per biennial cycle. If the bill is approved by a two-thirds majority, it would take effect immediately.
This latest development undoubtedly puts Texas on the path to potentially becoming a pioneer in maintaining a state-level cryptocurrency reserve in the United States. While it likely won’t be the only one. More than 20 states in the U.S. have introduced bills to explore strategic Bitcoin reserves, with over a dozen still under discussion.
Last week, the state of Oklahoma also advanced its efforts to recognize Bitcoin as a strategic sovereign reserve asset. In particular, members of the Oklahoma State House Committee voted last Tuesday in favor of passing bill HB 1203, which proposes creating a state reserve of Bitcoin.
Trump is expected to provide details tomorrow about his plan to create a strategic cryptocurrency reserve for the nation, with a potential official announcement coming during the White House cryptocurrency summit.