Texas Bitcoin Reserve Bill Enters Second Reading in House

Texas Bitcoin Reserve Bill Reaches Second Round in State House Review

Texas is getting closer to making history by starting its own  Bitcoin Reserve. A new law, Senate Bill 21 (SB 21), has already passed some big hurdles and is now in its second reading in the Texas House. If approved, it could become one of the first regions to hold BTC as a real financial asset, just like gold or oil.

Source: Texas Government 

The Bitcoin Reserve bill has strong support. It passed the Senate with a 25–5 vote and made it through a House Committee with a 9–4 vote. If the House passes it one more time, the bill will go to the governor for final approval. 

What Does the Bill Says?

SB 21 includes Texas to develop the state's Strategic Bitcoin Reserve. This would be an exclusive fund controlled by the state’s Comptroller who manages all the finances. The fund would include utilisation of donations and earnings from crypto activities such as staking and airdrops. 

But there are rules: the fund can only hold cryptocurrencies that have had a market value of over $500 billion for the past year. Right now, only BTC fits that rule. Ethereum might qualify in the future if its market cap goes up.

The Bitcoin Reserve bill also makes sure that all BTC and other digital assets are kept safe in cold storage, offline wallets that protect against hacking. Only licensed financial companies will be allowed to hold the crypto for the Texas. 

Significance of Strategic Bitcoin Reserve

The governmentt isn’t just saying yes to crypto through this Bitcoin Reserve, it wants to hold it as a long-term investment. Supporters believe only this cryptocurrency can protect the state’s money from inflation and economic trouble. In simple words, they think BTC can help the state stay financially strong when times are tough.

This would make the it only the third U.S. to officially hold this digital currency in a reserve, after Arizona and New Hampshire. As Texas is a major and powerful state, this decision can have an impact on many others.

What Happens Next?

There is not much time left. The state’s legislative session is about to end within two weeks. This means lawmakers must work as soon as possible if they want this bill to become law. If this draft passes, the governor will have the final statement over this.

Crypto experts are watching closely. CEO of the Satoshi Action Fund, Mr. Dennis Porter, says this is a huge step. He believes if the state moves forward, other states will follow. 

Crypto Industry's Perspective

If converted into law, Texas will join the early adopters to formally govern Bitcoin as a government reserve on the global level. This may result in more people investing in crypto, and potentially even prompt other states in the United States to follow suit.

The state is getting serious about leading in crypto. And if this plan pulls off, it has the potential to revolutionize the way governments around the world view digital money.