According to the live broadcast of the House of Representatives, on May 21st, Texas lawmakers passed a significant piece of legislation with 101 votes in favor and 42 against, approving the establishment of a state-level strategic reserve of Bitcoin (BTC). This move marks a crucial step forward for Texas in its exploration of digital assets, providing a new approach for its fiscal diversification and response to economic changes.
The process of bill advancement and key nodes
According to the BTC-related bills, after the current SB 21 bill is passed by the House of Representatives, it needs to be resubmitted to the Senate for approval with the newly added amendments.
It is worth noting that the Senate had already passed the previous version of the bill with 25 votes in favor and 5 against as early as March 5th. After the Senate passes this vote, the bill will be submitted to Governor Greg Abbott for final approval. Only with the governor’s approval can the bill officially come into effect.
Once the SB 21 bill reaches the governor’s desk, the governor will have 20 days to decide whether to sign or veto the bill. If the governor takes no action during this period, the bill will automatically come into effect on the first working day 20 days later.
The core content of the Bitcoin Reserve Plan
The proposal allows the state auditor general to use fiscal surplus funds to purchase BTC, and during the reserve process, the same reporting rules as those for the Texas Treasury’s custody of gold bars must be followed. Congressman Giovanni Capriglione, one of the main initiators of the bill, excitedly told his colleagues during the floor debate before the vote count: “Today is a crucial moment for us to pass the Strategic BTC Reserve bill and consolidate Texas’ leadership position in the digital age.”
Nowadays, we embrace this modern asset that combines traditional attributes with future potential. He further pointed out that BTC reserves not only enhance Texas’s fiscal sovereignty but also help the state become a forward-thinking region, better preparing for the evolution of global finance.
If the bill is eventually approved by the governor, Texas will follow in the footsteps of Arizona and New Hampshire and become the third state in the United States to incorporate public funds into the BTC strategic reserve framework. However, the launch of the BTC purchase program in Texas, USA, is not without conditions. The purchase program can only be officially initiated after the Auditor General publishes the procurement guidelines in the Texas Chronicle and a storage contract that meets the location requirements of the act is signed.
Review and Prospect of the Legislative Process
As early as March 6th, the Senate passed Bill SB 21. The bill’s initiator, Senator Charles Schwertner, believes that allocating a portion of the available cash in Texas to BTC can effectively protect purchasing power during currency shocks. According to the bill text submitted to the governor, the auditor general must disclose the acquisition date, the number of units and the total cost basis every quarter.
The bill does not set an investment limit denominated in US dollars, but it has clear requirements for the storage location of the reserve BTC, which must be kept in a qualified entity within the state of Texas or a qualified entity within a jurisdiction in the United States that recognizes BTC as property.
Furthermore, the bill also instructs the Auditor General to conduct in-depth research on potential revenue sources related to online participation, including the Lightning Network payment channel used to collect state government fees. These research results need to be submitted to the House Appropriations Committee by January 2026 for a comprehensive review before the 89th Legislative session.
Texas has taken another step forward on the path of integrating cryptocurrencies with government finances by passing legislation to establish a state-level strategic reserve of Bitcoin. Its subsequent development, whether it is the final decision of the governor or the specific implementation after the bill takes effect, will be closely watched by the cryptocurrency market and the global financial sector, and may also provide valuable reference examples for other regions in terms of digital asset reserves.
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