Strategic Bitcoin Reserve Bill (SB 21) Gains Final Texas Approval

Strategic Bitcoin Reserve Bill Adds Cold Storage, Expert Panel

Texas is on the way to making history with a new law that could make it one of the few U.S. states to officially invest in BTC. Senate Bill 21, also named as the Texas Bitcoin Reserve and Investment Act, has passed the Texas House of Representatives. It got a strong vote of 101-42. It is now forwarded to Governor Greg Abbott’s desk for final approval.

What the Bill Proposes

If signed into law, SB 21 will allow the comptroller to invest state funds in Bitcoin. It also opens the door for investments in other digital currencies, but only if they have had a market cap of minimum of $500 billion over the past 24 months. As of now, BTC is the only digital currency that meets this requirement. The currency is now trading at $111,425.54 with an increase of 4.16% in a day as per the CoinMarketCap. From the previous days it is perpetually experiencing an upward trend a good signal for the crypto market. 

Source: CoinMarketCap

The bill primarily orders the creation of a “Texas Strategic Bitcoin Reserve,”. State comptroller will be managing this fund. It is meant to act as a new financial tool to help Texas deal with inflation and economic ups and downs.

Cold Storage and Crypto Experts

The BTC kept in the Bitcoin Reserve is going to be stored using cold storage systems with security. This means the digital assets will be stored offline to prevent them from scams or theft. The comptroller could also partner with renowned U.S.-based organisation to keep the currency safe. 

An advisory committee of crypto investment experts is created to guide the comptroller. It will ensure everything is managed properly. Every two years, the comptroller must report to the state legislature, sharing updates: 

• The amount of BTC in the Fund

• Worth of the Currency

• Any changes made

Donation and Agency Rules

The bill also allows Texans to donate BTC directly to the reserve. However, these donations must be held for at least five years before they can be sold or converted. It even lets state agencies accept certain types of crypto payments, which will then be turned into Bitcoin for the reserve.

Texas House Bill 1598 encouraged SB 21 by offering legal structure to how the Bitcoin Reserve actually works. It will go into effect either on September 1, 2025 or a two-thirds vote. 

A Move Toward Digital Leadership

Supporters of this bill, Senator Charles Schwertner and Giovanni Capriglione, stated this is a bold move that depicts the state is going ahead with the aim of being a pioneer in digital innovation. Capriglione said that it is a “forward-thinking approach” and it proves that BTC is not just a casual trend but a legit strategic digital asset.

State will join New Hampshire and probably Arizona, as one of the primary states having a formal Bitcoin Reserve. Conversely, some states like Montana have blocked similar plans, because of the risk associated with crypto markets. 

With SB 21, Texas is looking ahead, aiming to mix old-school finance with new-age digital tools. Whether this move pays off remains to be seen, but it’s clear that the US is ready to bet on crypto's future.