Texas Approves Final Step for Establishment of Bitcoin Reservoir Fund
Texas Senate Clears Final Hurdle for Proposed Bitcoin Reserve Fund
The Texas Senate has approved a conference committee report for Senate Bill 21 by a decisive 24-7 margin, marking the final legislative hurdle for the state's proposed Bitcoin reserve fund. With both chambers adopting the measure, the legislation now awaits the final approval and signature of Governor Greg Abbott.
Senator Schwertner declared the motion's success during floor proceedings, noting that the law creates the Texas Strategic Bitcoin Reserve, a specialized fund to be administered by the state Comptroller of Public Accounts. This development puts Texas on track to become the third state to establish an official Bitcoin reserve, following in the footsteps of New Hampshire and Arizona.
The legislation's final version incorporates several amendments that emerged during House deliberations, including authorization for the Comptroller to engage qualified liquidity providers and expand the fund's financial capabilities.
Key revisions include a 24-month duration requirement for eligible cryptocurrencies, meaning altcoins must maintain a minimum market capitalization of $500 billion for two full years before qualifying for inclusion in the reserve. The legislation also prohibits the Comptroller from using reserve assets for lending or staking, and removes clauses permitting voluntary cryptocurrency contributions to the fund.
Other U.S. states have proposed or are considering establishing Bitcoin reserves, including Kentucky, Florida, Montana, North Dakota, Oklahoma, Pennsylvania, South Dakota, Wyoming, North Carolina, Alabama, and Utah. However, not all proposals have been successful, with some bills being withdrawn or vetoed.
New Hampshire's framework served as a reference point for Texas legislators when evaluating and incorporating additional digital assets beyond Bitcoin into state reserves. The $500 billion market capitalization threshold for eligible cryptocurrencies represents one of the most stringent requirements among state-level cryptocurrency initiatives, reflecting Texas' commitment to adopting cryptocurrencies.
Analysts predict potential 3x gains for certain cryptocurrencies due to a strong correlation with the Bitcoin market, but these predictions are not directly related to the Texas legislation.
- The Texas Bitcoin reserve fund, the Texas Strategic Bitcoin Reserve, will be administered by the state Comptroller of Public Accounts, as stated in the legislation.
- The Texas Senate has approved a conference committee report for Senate Bill 21, which creates the Texas Strategic Bitcoin Reserve.
- Texas is set to become the third state to establish an official Bitcoin reserve, following in the footsteps of New Hampshire and Arizona.
- The final version of the legislation allows the Comptroller to engage qualified liquidity providers and expand the fund's financial capabilities.
- Eligible cryptocurrencies for the Texas reserve must maintain a minimum market capitalization of $500 billion for two full years, as stipulated in the revisions.
- Other states proposing or considering Bitcoin reserves include Kentucky, Florida, Montana, North Dakota, Oklahoma, Pennsylvania, South Dakota, Wyoming, North Carolina, Alabama, and Utah, but not all proposals have been successful.
- Analysts predict potential 3x gains for certain cryptocurrencies, but these predictions are not directly related to the Texas legislation regarding the Bitcoin reserve fund.
In addition, terms such as 'blockchain', 'token', 'staking', 'mining', 'crypto', 'ICO', 'tron', 'dex', 'xrp', 'finance', and 'business', as well as 'technology' could be connected to the discussion of the Bitcoin reserve fund in a broader context by discussing the technological advancements in cryptocurrency and finance, or the potential impact of altcoins, ICOs, or DeFi (decentralized finance) on the Bitcoin market, business strategies, or financial stability.
