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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