The Texas House of Representatives has made a major breakthrough in the legislative process of the Bitcoin Reserve bill by passing it.
The bill, known as SB 21, was passed by a vote of 101 to 42 and has been sent to the governor’s office. If signed into law by Governor Greg Abbott, Texas will become the second state in the US to establish a bitcoin reserve, following New Hampshire.
Specifically, SB 21 requires the state comptroller to manage the Texas Strategic Bitcoin Reserve. The initial funds of the reserve come from taxes, fees, and donations, and 1% of the unrestricted general revenue can be used to purchase bitcoin every two years. The bill also stipulates that the reserve assets must have a market capitalization of not less than $500 billion for two consecutive years, and currently, only bitcoin meets this requirement. In an emergency, the governor or the Legislative Budget Board can authorize the sale of bitcoin in the reserve.
Proponents of the bill believe that the fixed supply and decentralized nature of bitcoin can hedge against the risk of the US dollar depreciating. They compare bitcoin to gold, emphasizing its scarcity and resistance to manipulation. However, some lawmakers have expressed concerns about bitcoin’s volatility and potential risks associated with cryptocurrency investments.
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