Texas is making waves in the world of cryptocurrency as the state senate recently passed a bill allowing public funds to be allocated to digital assets. This move positions Texas as a leader in the growing trend of states exploring crypto investments, following President Donald Trump’s call for a federal strategic crypto reserve.
The bill, known as SB 21, would enable Texas to invest in Bitcoin as a reserve asset. Senator Charles Schwertner, the bill’s sponsor, believes that Bitcoin serves as a hedge against inflation and financial instability. He argues that Bitcoin has demonstrated its resilience through economic cycles, making it a viable option for the state’s investment portfolio.
In addition to Texas, New Hampshire has also made progress in this area. A state house committee recently approved House Bill 302, which would allow the state to invest up to 5% of public funds in Bitcoin and precious metals. The bill now awaits a full vote in the state legislature.
Utah is also considering similar legislation, with a bill already passed by the state house awaiting a vote in the Senate. If approved, Utah would be able to allocate public funds to digital assets with a market capitalization exceeding $500 billion, with Governor Spencer Cox having the final say on whether to sign it into law.
The push for state-level crypto investments comes on the heels of President Trump’s announcement of a national crypto reserve plan on social media. While the specifics of this plan are still unclear, industry leaders have emphasized the unique qualities of Bitcoin as a reserve asset, comparing it to gold.
As states navigate the complexities of incorporating cryptocurrency into public finance, the debate over its role is expected to intensify in the coming months. With some states moving towards Bitcoin adoption and others facing legislative challenges, the future of crypto investments in the public sector remains uncertain but promising.