Texas Governor Greg Abbott has signed landmark legislation allowing the creation of a Bitcoin reserve fund, making Texas the third state in the US to adopt such measures.
SB21 Bitcoin Reserve Bill
Senate Bill 21, also known as 'The Texas Strategic Bitcoin Reserve Act,' was signed into law on Saturday. This law allows for the creation of a reserve outside the usual state treasury managed by the Texas Comptroller of Public Accounts.
The reserve is intended to allow the state to invest in Bitcoin and other qualifying crypto assets to potentially hedge against inflation and economic uncertainty. However, the law requires that the assets maintain an average market capitalization of around $500 billion over the previous 24 months. Currently, Bitcoin is the only crypto asset that meets this criterion.
National Plans by the US Government
Texas ranks as the third state to authorize its treasurer to establish a Bitcoin reserve, positioning itself ahead of federal proposals by President Donald Trump and Republican lawmakers. In March, Trump signed an executive order authorizing the creation of a national strategic Bitcoin reserve for the United States.
Implications and Prospects
The signing of SB21 by Abbott follows his approval of House Bill 4488, which protects the reserve from being absorbed into the state's general revenue fund. This measure is aimed at insulating the reserve from shifting budget priorities. Such an approach could enhance the state's financial resilience and create additional investment opportunities.
In conclusion, Texas is taking a significant step towards integrating cryptocurrencies into its financial framework, potentially influencing other states and federal legislation.
