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Texas Signs Strategic Bitcoin Reserve Into Law – Details

In a major development, the Texas State Government has officially signed a strategic Bitcoin reserve into law thereby diversifying its financial investment strategy. Following this event, Texas officially became the third US State to own a Bitcoin reserve fund under five months of the pro-crypto Donald Trump administration.

Texas To Run Treasury-Independent Bitcoin Reserve

On June 20, Texas State Governor Gregg Abbot officially enacted SB 21, which proposed the formation of a strategic Bitcoin reserve for the purpose of investing in the digital asset market. The bill, now law and authored by Senator Charles Schwertner states the proposed Bitcoin reserve is to exist outside the state treasury but still under the investment authority of the comptroller of public accounts. Furthermore, the reserve is allowed to hold Bitcoin and other cryptocurrencies as dictated by the comptroller. However, only cryptocurrencies with an average market capitalization of $500 billion over a 12-month period can be logged into the reserve effectively limiting entry to Bitcoin ($2.07 trillion) and perhaps Ethereum ($272.3 billion) in the coming years. Meanwhile, all investments of the reserve into the state treasury requires authorization by the legislature via the general appropriations act or another law. However, the comptroller is allowed to withdraw Bitcoin or spend the net proceeds from asset sales to cover all costs involved in managing the reserve. Alongside SB 21, Governor Abbott also signed HB 4488, a separate bill that prevents the strategic Bitcoin reserve and other certain state funds from undergoing a periodic treasury fund sweep while ensuring the reserve’s legal existence even if no Bitcoin has been purchased by summer 2026.

The State Bitcoin Reserve Race

On March 6, US President Donald Trump signed a federal strategic Bitcoin reserve into law encouraging states to explore the premier cryptocurrency as an investment tool. As earlier stated, Texas is the third US state now operating a strategic Bitcoin reserve after Arizona and New Hampshire. According to data from Bitcoin Laws, there are currently five other states looking to join the pack with a proposed legislative bill still under review. These states include Michigan, Ohio, North Carolina, Rhodes Island, and Massachusetts. Meanwhile, efforts in states like Oklahoma, Florida, and Georgia, among others, have faced significant setbacks, with proposed Bitcoin reserve bills either stalled or formally repealed due to legislative or political roadblocks. At press time, Bitcoin continues to trade at $102,650 following a 2.74% decline in the past week. This negative performance underscores the asset’s price struggles in the past month amidst an intense price correction resulting in 7.50% loss.

Bitcoin reserve

from Bitcoinist.com https://ift.tt/9zs1rHj
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