Financial Insights That Matter
- Texas advances Bitcoin reserve bill ahead of May 20 House reading.
- New Hampshire and Arizona have already passed similar legislation.
- Bills in Montana, Wyoming, and Oklahoma failed earlier this year.
There’s a saying that ‘everything’s bigger in Texas,’ and its push to become the crypto capital of the US is no exception.
A bill to create the Texas Strategic Bitcoin Reserve, formally titled SB21, is now headed for its second reading in the state House on May 20.
Its a key step before a final floor vote and potential enactment.
The Texas Bitcoin Reserve bill is “on the move,” Dennis Porter, CEO of the Satoshi Action Fund, wrote on X, adding that “time is running out” as the legislature is set to adjourn just two weeks later.
Texas would become the third US state to approve legislation enabling Bitcoin reserves after New Hampshire and Arizona if the bill passes.
The proposed law would allow the state comptroller to manage a fund outside the treasury to purchase Bitcoin and other digital assets with a market capitalisation of at least $500 billion. Currently, that only includes Bitcoin.
The reserve could be funded through legislative appropriations, airdrops, forks, investment earnings, and public or private donations.
Assets would be held in cold storage and overseen by an advisory committee.
Governor Greg Abbott appears favourable to the effort, having posted on X last November: “Texas is already the home of crypto mining. This session, Texas should become the crypto capital.”
Winners and losers
New Hampshire won the race to first place earlier this month, passing a law that allows its state treasury to invest in Bitcoin and other digital assets with a market cap of over $500 billion.
Just days later, Arizona passed its own measure to establish a digital assets strategic reserve, though it stops short of committing public funds to direct investment.
Not every effort has succeeded. Oklahoma’s version of the Bitcoin reserve act died in committee last month, while proposals in Montana, North Dakota, and Wyoming also fizzled out earlier this year.
According to Bitcoin Laws, there are currently 37 strategic Bitcoin reserve bills live across 20 states.
Crypto market movers
- Bitcoin has gained 1% over the past 24 hours and is trading at $103,975.
- Ethereum is also up 1% in the same period to $2,510.
What we’re reading
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at [email protected].
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