Texas Bill for State-Backed Bitcoin Holding Approaches Decisive House Vote
Legislation in Texas aimed at establishing a state-controlled Bitcoin reserve is advancing to a pivotal second reading within the House of Representatives.
This procedural step, as detailed on the bill’s official legislative page, is a critical precursor to a final floor vote and brings Texas closer to potentially forming a government-managed repository for the cryptocurrency.
Navigating the Legislative Timeline
The impending second reading is regarded as an “essential progression” towards a definitive vote, according to a Saturday statement from Dennis Porter, co-founder and CEO of the Satoshi Action Fund.
A significant time constraint exists, as the Texas legislature is scheduled to conclude its session by June 2.
Failure to pass Senate Bill 21 (SB 21) before this adjournment would render the bill void, necessitating its reintroduction in a future legislative term.
Should SB 21 receive approval during this House reading, it is anticipated to proceed swiftly to a third reading and a subsequent final vote on the House floor.
If successfully passed, the legislation would then be presented to the state governor for enactment.
Progress and Bipartisan Support So Far
The proposed bill has already navigated two substantial legislative milestones
It secured passage in the Texas Senate on March 6 with a 25–5 vote, and on May 7, it was approved by the relevant House Committee in a 9–4 vote, without any alterations.
Core Provisions of the Bitcoin Reserve Act
Designated as the “Texas Strategic Bitcoin Reserve and Investment Act,” SB 21 is the work of Senator Charles Schwertner, with Representative Giovanni Capriglione serving as its sponsor in the House.
The act would grant the state authority to acquire, maintain, and oversee Bitcoin holdings as part of an officially managed reserve.
This initiative frames Bitcoin as a strategic financial instrument, potentially serving as a bulwark against inflationary pressures and economic fluctuations, thereby bolstering the state’s long-term fiscal stability.
Funding Mechanisms and Asset Eligibility
The financial underpinning for this reserve is projected to derive from a combination of legislative appropriations, returns on investments, and voluntary contributions from Texas citizens.
Additionally, it would incorporate any Bitcoin or other qualifying digital currencies obtained through mechanisms such as blockchain forks or airdrops.
Nevertheless, the legislation stipulates rigorous eligibility requirements: any digital asset considered for the reserve must have consistently demonstrated a market capitalization of no less than $500 billion over the preceding twelve-month period.
At present, Bitcoin is the sole digital asset fulfilling this criterion.
Texas in Context: A Growing Trend Among US States
Enactment of this legislation would position Texas as the third jurisdiction within the United States to formally sanction a Bitcoin reserve, following the examples set by New Hampshire and Arizona.
This move is consistent with Texas’s overarching policies, which are generally seen as accommodating to the cryptocurrency sector.
New Hampshire established a precedent in this area, becoming the first U.S. state to authorize a strategic Bitcoin reserve upon the enactment of House Bill 302 (HB 302) on May 6.
Also Read: Texas on the Brink of Authorizing a Bitcoin Reserve
