On May 7, the House Committee on Government Efficiency and Accountability passed Senate Bill 21 (SB 21) in a 9-4 vote, divided along party lines. The bill had previously passed the Texas Senate on March 6 with a 25-5 vote.

Texas Strategic Bitcoin Reserve Taking Shape

SB 21 proposes the creation of a state-run fund called the Texas Strategic Bitcoin Reserve. The reserve would be managed by the state comptroller, currently Glenn Hegar. According to the bill, the fund would be permitted to invest only in digital assets with a market capitalization exceeding $500 billion over the previous 12 months — which, for now, limits it to Bitcoin.

Originally introduced by Senator Charles Schwertner in January, the bill was initially exclusive to Bitcoin. However, a revision in February broadened its scope to potentially include other digital assets in the future.

Julian Fahrer, founder of Bitcoin Laws, noted that the Texas legislative session ends on June 2, meaning a decision on SB 21’s fate is expected before then.

If the bill passes the full House vote, it will be sent to Governor Greg Abbott, who has previously voiced support for making Texas the crypto capital of the United States. Abbott accepted Bitcoin donations during his 2014 campaign and has continued to advocate for pro-crypto policies.

Other U.S. States Join the Crypto Reserve Trend

Texas is not alone in exploring crypto reserves. On the same day SB 21 moved forward, Arizona Governor Katie Hobbs signed a bill allowing the state to hold abandoned crypto assets and create a Digital Asset Reserve Fund. This fund will not rely on taxpayer money and can generate value through staking or airdrops.

Just days earlier, New Hampshire Governor Kelly Ayotte signed a law enabling the state treasury to invest in digital assets with a market cap above $500 billion — again pointing primarily to Bitcoin.

In contrast, Florida withdrew two Bitcoin reserve proposals on May 3, the same day the legislature passed 230 other bills, including those restricting smartphone use in schools and implementing public park protections.

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What the Bill Includes

• A reserve fund made of seized digital assets from criminal proceedings.
• The state treasurer can invest up to 10% of the fund in digital assets per fiscal year.
• Loans can be made from the fund to boost returns, as long as risk remains controlled.

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However, Governor Hobbs has recently vetoed 15 bills in one week and pledged to block all legislation until a disability funding bill is passed.

US States in the Bitcoin Reserve Race

Arizona is also advancing SB 1025, a separate bill focused solely on Bitcoin (BTC), allowing public retirement systems and the treasury to allocate up to 10% in BTC.

Other states like Texas, Utah, and New Hampshire have proposed similar legislation. But according to Bitcoin Laws founder Julian Fahrer, Texas may be the first to succeed due to fewer political hurdles.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Arizona Crypto Reserve Bill One Step from Becoming Law! appeared first on Coin Engineer.

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Speaking at a campaign rally in New Hampshire, Trump said that CBDCs could give the federal government too much power over money.

“I’m making another promise tonight to protect Americans from the tyranny of government,” Trump said. “As your president, I will never allow the creation of a Central Bank Digital Currency. Such a currency would give the federal government, our federal government, absolute control over your money… They can take your money and you won’t even know it’s gone.”

Donald Trump’s digital currency comments

Donald Trump’s digital currency comments come as the Federal Reserve is exploring the possibility of issuing a CBDC. Federal Reserve Governor Michelle Bowman said in October that she has not yet seen a compelling argument for a U.S. CBDC and that other alternatives could address financial challenges.

The Fed has made it clear on its website that it has not made any decisions about issuing a CBDC and would only proceed with issuance with an authorizing law. Federal Reserve Chairman Jerome Powell said in March 2023 before the House Financial Services Committee that a CBDC is “something that we would certainly need congressional approval for.”

A CBDC tracker compiled by the Atlantic Council showed that 130 countries, representing 98% of global gross domestic product, are researching a CBDC.

According to the Atlantic Council, 64 countries are in advanced stages, with the European Central Bank announcing in October that it is in the “preparation phase” for a digital euro and China completing its first international crude oil trade with the digital yuan.

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