Texas Senate passes Bitcoin reserve bill

The Texas Senate has approved Senate Bill 21 (SB-21) with a 25-5 vote, paving the way for the establishment of a strategic Bitcoin (CRYPTO:BTC) reserve in the state.

This move positions Texas as a leader in the U.S. states' race to invest public funds in cryptocurrencies, following President Trump's announcement to create a federal crypto reserve.

Senator Charles Schwertner, who introduced the bill, argued that Bitcoin serves as a valuable asset to hedge against inflation and economic volatility, similar to gold.

He emphasised that Bitcoin has proven itself through multiple boom and bust cycles, making it a suitable reserve asset for Texas.

The bill allows the Texas Comptroller to buy, hold, and manage Bitcoin and other digital assets, funded through legislative appropriations and donations.

It also creates a Strategic Bitcoin Reserve Advisory Committee to provide guidance on managing the reserve.

If enacted, Texas will become the first U.S. state to establish a digital asset strategic reserve.

The passage of SB-21 reflects growing interest in cryptocurrency reserves among U.S. states, with New Hampshire and Utah also advancing similar bills.

Wyoming Senator Cynthia Lummis noted that states are likely to adopt Bitcoin reserves before the federal government due to bureaucratic hurdles.

"Texas cannot expect to put its money in a one-percent savings account and keep up with inflation. We need to be forward-thinking as individuals are forward-thinking when it comes to financial assets," Senator Schwertner stated.

This sentiment underscores the strategic importance of diversifying state investments in the evolving digital economy.

The bill now moves to the Texas House for consideration before it can be signed into law by the governor.

Its approval would mark a significant step in Texas's efforts to become a hub for digital assets and innovation.

At the time of reporting, the Bitcoin (BTC) price was $88,012.02.