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- Texas Senate passes SB21, paving the way for a state-backed Bitcoin reserve despite mixed reactions from lawmakers.
- SB21 advances to the Texas House, allowing investments in Bitcoin or cryptocurrencies with a $500 billion market cap.
- Texas joins over 20 states exploring crypto reserves as debates over Bitcoin’s volatility and regulatory concerns continue.
The Texas Senate has approved Senate Bill 21 (SB21), a proposal to establish a state-level strategic Bitcoin reserve. The bill, which secured a decisive 25-5 vote, represents a significant step toward cryptocurrency adoption at the state level.
The Texas bill, introduced by Senator Charles Schwertner, now allows the state to invest in Bitcoin and other cryptocurrencies. When choosing which cryptocurrency to support, Schwertner described Bitcoins as having limited circulation and flexibility as the key advantages.
Bill Provisions and Next Legislative Steps
SB21, introduced initially on February 12, proposes that the reserve be funded through appropriations, revenue streams, and donations. The bill does not impose a specific investment cap, granting flexibility in acquiring digital assets.
Depending on the provisions of the law, Texas can invest in Bitcoin or another cryptocurrency if an asset has a market capitalization of more than $ 500 billion. This threshold confines the selection to Bitcoin and a handful of other digital currencies.
With Senate approval secured, the bill will now advance to the Texas House for further deliberation. The House committee has a deadline of May 24 to take action on the bill before it can move forward in the legislative process.
Mixed Reactions as Bitcoin Debate Continues
The bill has sparked contrasting views among lawmakers. Supporters argue that Bitcoin presents a long-term store of value with substantial economic potential. Opponents, however, have raised concerns over its volatility and regulatory uncertainties.
Senator Roland Gutierrez, an opposition senator and a critic of SWS, described Bitcoin as an unusable investment for state money. He also emphasized that its price is volatile and has little practical application in the physical world; even with Bitcoin, one cannot buy a pizza.
Growing Trend of State-Level Bitcoin Reserves
Texas is among more than 20 states that have introduced bills exploring the creation of cryptocurrency reserves. Although some states have rejected similar proposals, Texas’ decision symbolizes one of the flagship milestones in advancing digital assets regulation at the state level.
The outcome of the upcoming House vote will determine whether Texas officially establishes a Bitcoin reserve. If passed, the bill could set a precedent for other states considering similar measures.
Conclusion
Texas has taken a bold legislative step with the approval of SB21, reinforcing its pro-cryptocurrency stance. The bill’s progress in the House will be closely watched, as its passage could influence other states’ approach to digital asset reserves.
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