A recently signed bill in Texas opens new possibilities for Bitcoin investments from public funds. This move puts the state at the forefront among other regions in the U.S.
New Bitcoin Law in Texas
Governor Greg Abbott signed Senate Bill 21, allowing the state to buy and hold Bitcoin. This legislation enables the state to invest up to $2.1 billion from its Economic Stabilization Fund. The Texas Bitcoin Reserve launched with an initial investment of $10 million from public funds.
Comparison with Other States
Texas becomes the third U.S. state to create such a reserve, following New Hampshire and Arizona. New Hampshire also passed a law restricting Bitcoin investments to 5% of its savings, allowing approximately $14.6 million for investment. Arizona, however, failed to advance its bill that would permit a 10% investment from its $1.5 billion savings fund.
Future Perspectives and Plans
The rules and structure of the Texas Bitcoin Reserve suggest a long-term strategy. The state reserve will be managed by a five-member advisory board overseeing investment effectiveness. While current legislation forbids activities such as staking or lending for additional income, future amendments may allow these actions.
The launch of the Texas Bitcoin Reserve represents a serious approach to using digital assets in state financial management. This innovative step could pave the way for further changes in cryptocurrency policies at the state level.
