Texas lawmakers have reintroduced a bill to establish a state-run Bitcoin reserve, refining its structure to allow broader cryptocurrency investments and increased financial flexibility.
Overview of SB 21 Bill
Senate Bill 21 (SB 21), filed on February 12 by State Senator Charles Schwertner, builds upon an earlier proposal while expanding investment opportunities and granting financial experts greater control over the reserve’s management. If passed, Texas would become the first state to create a Strategic Bitcoin Reserve, which Schwertner believes will drive innovation, economic growth, and financial freedom.
Key Changes and Their Implications
The revised bill positions the reserve as an active investment vehicle rather than a passive holding. It authorizes the state to buy, sell, and manage cryptocurrency assets, emphasizing financial security and economic stability. SB 21 also allows investments in other digital assets, provided they have maintained a market capitalization of at least $500 billion for the past year, a threshold currently met only by Bitcoin. The key change in the proposals is transferring management authority from state legislators to financial experts, simplifying investment decision-making.
Industry Reaction and Impact
Industry experts have responded positively to the bill’s changes. Pierre Rochard, vice president of research at Riot Platforms, described SB 21 as 'very bullish,' noting that it removes the annual $500 million cap on Bitcoin purchases. This enables the legislature to allocate as much funding as necessary to strengthen the state’s crypto holdings. Satoshi Action Fund founder Dennis Porter reaffirmed the bill’s importance, stating that the Lieutenant Governor’s office considers it a significant priority. Importantly, SB 21 replaces Senate Bill 778 (SB 778), initially introduced by Schwertner, which strictly limited the reserve to holding Bitcoin (BTC) as a strategic asset.
The reintroduced strategic Bitcoin reserve bill in Texas could significantly alter the state's approach to cryptocurrency assets and impact the industry at large. With expanded investment opportunities and management by financial experts, it is a pivotal step towards enhancing economic stability and innovative development in the region.
