The Texas Senate has recently voted in favor of SB21, a bill concerning the strategic reservation of Bitcoin. This move marks a significant breakthrough for the state in cryptocurrency reserves.
Essence of SB21 Bill
The SB21 bill, originally filed on February 12, proposes creating a Bitcoin reserve funded from appropriations, revenues, and donations. It does not specify a particular investment limit. The bill allows investment in Bitcoin or an altcoin with a market capitalization of at least $500 billion.
Proponents' and Opponents' Arguments
Senator Charles Schwertner stated that Bitcoin has proven itself to be the most preferred due to its limited supply and adaptability. Meanwhile, Senator Roland Gutierrez opposed the bill, arguing that Bitcoin is too volatile and unregulated, pointing out the cryptocurrency's limited use cases, such as buying pizza.
Prospects and Reactions
After successfully passing the Senate, the bill is now moving to the House for final approval by May 24. Amidst this, more than 20 states have introduced their strategic Bitcoin reserve bills. According to Polymarket bettors, there's a 65% chance of a similar bill being passed by 2025.
The approval of the strategic Bitcoin reserve bill in the Texas Senate represents an important step toward state-level adoption of cryptocurrencies. If SB21 is confirmed by the House, Texas will become one of the pioneers in this field.
