Texas Senators on Thursday passed a bill that seeks to create a strategic Bitcoin reserve in the state, pushing the proposal one step closer to becoming law as it next heads to the House of Representatives.
The bill—SB 21—proposes a "state-managed investment fund focused on Bitcoin and other high-market-cap cryptocurrencies."
SB 21 is different from an earlier Bitcoin bill dubbed H.B. No. 1598, and introduced by Texas State Representative Giovanni Capriglione.
Although both bills want the government to hold a crypto stash, SB 21 would be different as it would be held outside the state treasury and would allow authorities "a more flexible and investment-driven approach, potentially allowing Texas to capitalize on crypto market movements," according to Texas Policy Research.
H.B. No. 1598 would require lawmakers to buy and hold the biggest cryptocurrency, and not touch it for at least five years.
During a pre-vote debate Thursday, Senator Charles Schwertner, who proposed the bill, argued that holding Bitcoin could help the state fight inflation.
"Texas cannot expect to put their money in a 1% savings account and keep up with inflation," he said. "We need to be forward-thinking as individuals or forward-thinking when it comes to financial assets and the investment of those financial assets."
Donald Trump and Bitcoin: From 'Not a Fan' to Crypto President—With His Own Meme Coin
Bitcoin-friendly Donald Trump won the election in November, and was inaugurated in January as the 47th President of the United States of America. But ahead of being formally sworn in, the commander in chief dropped a meme coin. Yes, you read that right. Running on the Solana network, the TRUMP token at one point had a market cap of $14 billion. It’s since plunged to $2.9 billion but the move signaled the new President’s growing enthusiasm for the digital asset space after campaigning to help Bit...
A number of U.S. states are trying to pass legislation to hold Bitcoin and other cryptocurrencies. President Trump on Sunday announced that the U.S. would create a "crypto reserve" holding digital coins like XRP, Solana, and Cardano, as well as Bitcoin and Ethereum.
The president said he'd help the digital asset industry and set up a Bitcoin stockpile during his campaign. It isn't certain how easy lawmakers would pass a crypto reserve at national level.
Edited by Andrew Hayward
Editor's note: This story was updated after publication with additional details.
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