Texas lawmakers introduced new legislation last week to push for the creation of the Texas Strategic Bitcoin Reserve.
Senator Charles Schwertner (R-Georgetown) introduced Senate Bill 21, which aims to invest state funds into cryptocurrencies, starting with Bitcoin.
The proposed legislation aims to diversify the state’s financial assets by creating a dedicated reserve for the Texas Comptroller’s office to invest in cryptocurrencies. The goal is to enhance the state’s financial stability, providing a hedge against inflation and any potential economic instability in the future, according to a report from Fox 4 KDFW.
Schwertner’s bill would establish a five-person committee within the Comptroller’s office to oversee the reserve and ensure its proper management. While the bill does not outline the specific types of cryptocurrencies the state could invest in, it sets clear guidelines that any currency must have a market capitalization of at least $500 billion over a 12-month period.
Bitcoin is the only cryptocurrency currently meeting this threshold, with a market cap of approximately $1.9 trillion, per Coinbase.com.
A staunch cryptocurrency supporter, Governor Greg Abbott has shown enthusiasm for the proposal, responding to the bill with a social media post featuring an eyes-open emoji.
The new bill does not specify the minimum investment required for the reserve or the time frame for holding assets. However, it does grant the flexibility to temporarily move assets to the state treasury if necessary.
This proposed Bitcoin Reserve reflects a broader trend toward exploring digital assets by the state and federal governments.
On a national level, Trump recently signed an executive order aimed at clarifying cryptocurrency regulations. Additionally, Senator Cynthia Lummis (R-WY) proposed a federal bill last year seeking to create the national Bitcoin Reserve, which would authorize the U.S. Treasury to purchase 1 million bitcoins over the next five years to hold in a trust for at least 20 years.
As previously reported by The Dallas Express, the President and First Lady launched their own crypto-coins—$TRUMP and $MELANIA—last month, immediately causing a viral buying frenzy upon their debut.
Last year, Texas implemented new rules requiring Bitcoin miners to register and report key details to the state.
The regulations, which have been enforced by the Public Utilities Commission of Texas (PUCT) since late November, apply specifically to miners connected to the ERCOT grid. Miners must register with PUCT within one business day of joining the grid, providing information such as location, ownership, and electricity demand.