The Texas Senate Banking Committee recently made a significant move by unanimously approving a bill that would establish a state-managed Bitcoin and cryptocurrency reserve. The proposal, known as Senate Bill 21 (SB-21), was introduced by State Sen. Charles Schwertner and has now been sent to the full Senate for consideration.
If passed, SB-21 would authorize the Texas Comptroller of Public Accounts to acquire, manage, and trade Bitcoin and other cryptocurrencies. Lawmakers supporting the bill argue that holding Bitcoin could help protect state financial reserves from inflation and economic instability. Originally focused solely on Bitcoin, the bill was revised in February to include other digital assets following President Donald Trump’s executive order directing a federal commission to evaluate the feasibility of a national digital asset reserve.
The potential benefits of holding Bitcoin for the state’s financial security are emphasized in the bill, stating that “Bitcoin and other cryptocurrencies can serve as a hedge against inflation and economic volatility.” Pierre Rochard, vice president of research at Bitcoin mining firm Riot Platforms, testified in favor of the bill during a public hearing, highlighting Bitcoin’s transparent and auditable nature as a strong asset for public financial management.
Texas is not alone in exploring the creation of Bitcoin reserves, as more than 20 states have introduced similar proposals to allocate a portion of public funds to Bitcoin and other digital assets. States like Oklahoma, Arizona, and Utah are also considering measures to diversify their financial holdings and hedge against economic uncertainties.
While some states have seen success in advancing Bitcoin reserve bills, others have faced challenges. States such as Montana, North Dakota, and Wyoming have recently rejected similar proposals, citing concerns over the volatility and speculative nature of digital assets.
Overall, the move towards creating state-managed Bitcoin reserves reflects a growing interest in cryptocurrencies as a potential tool for financial management and stability. If SB-21 is passed by the full Senate, Texas could join a growing number of states embracing Bitcoin and other digital assets as part of their financial strategy.