Texas Passes Bill Establishing State Bitcoin Reserve
Texas has taken a significant step into the cryptocurrency sphere with the passing of Senate Bill 21, establishing the Texas Strategic Bitcoin Reserve. The bill, which awaits Governor Greg Abbott's signature, authorizes the creation of a special fund outside the state treasury for investing in Bitcoin and other approved cryptocurrencies.
The bill grants the State Treasurer full authority over the reserve's administration. This includes acquiring, managing, staking, and potentially liquidating digital assets. Governor Abbott, a known supporter of Bitcoin and blockchain technology, wants Texas to be at the forefront of this innovation. Texas joins New Hampshire and two other U.S. states in adopting Bitcoin as part of its state investment strategy.
The reserve will only invest in cryptocurrencies with a 12-month average market cap of at least $500 billion. Assets must be stored using 'cold storage' technology to prevent unauthorized access. Under limited conditions, the reserve can be temporarily liquidated for state cash management.
Once signed by Governor Abbott, Texas will become the third U.S. state to officially adopt Bitcoin as a reserve asset. This move signals Texas' commitment to embracing cryptocurrency and blockchain technology, potentially attracting further investment and innovation in the sector.
