Texas Bitcoin Reserve bill advances to third reading

SB 21, Texas’s bill to create a state-level Bitcoin Reserve, has passed its second reading in the House with overwhelming support. It now requires one more vote and Governor Greg Abbott’s signature to become law.

The bill draws inspiration from successful efforts in other states, notably New Hampshire’s model for adding new tokens to its Reserve. Under SB 21, Texas would allow altcoins to be included only if they maintain a market capitalization of at least $500 billion for a continuous period of two years.

Texas is rapidly headed to form its own Strategic Bitcoin Reserve. Legislators voted resoundingly to advance the bill. This legislation hopes to see Texas become the third state to own and operate a state-funded Bitcoin Reserve in the United States.

The third and final reading would come next, and experts said that was likely to pass easily.

SB 21 passes second reading with strong bipartisan support

Upon its second reading, the bill, also called Senate Bill 21 (SB 21), received overwhelming bi-partisan support. The vote was 105 to 23. This demonstrates clear partisan agreement.

With SB 21, the Texas Comptroller of Public Accounts will oversee a state-held Bitcoin reserve. The fund plans to invest the government’s money in Bitcoin as a strategic asset. The goal is to diversify Texas’s financial holdings beyond conventional investments.

The bill contains provisions to safeguard the state’s investment. Only digital assets worth over half a billion dollars and held for at least two years will be included in the reserve. This is to promote a reserve consisting of stable, trusted cryptocurrencies.

Legislative appropriations and other state funds are to be made available for the operation of the reserve. The comptroller’s office will manage the purchasing, holding, and selling of Bitcoin for the reserve.

Bill advances toward Governor’s signature

Texas is on its way to being the third state to create an official reserve of Bitcoin after New Hampshire and Arizona. This is just one example of an emerging trend in the US as more states turn to Bitcoin to help fortify their finances.

Popularity has been rising for the initiative to hold Bitcoin after President Donald Trump suggested it was a good idea for states to hold Bitcoin; parties such as the South Carolina GOP found this a good time to ask followers to give their opinions. Supporters believe holding Bitcoin can enable states to hedge against inflation and economic instability.

The cryptocurrency market has already felt the impact of news of the bill. Amid the state-backed interest in Bitcoin reserves, the asset price has soared to $106,000, targeting an all-time high.

There is growing evidence of faith in Bitcoin and state-run digital asset initiatives. And while it is supposedly a Bitcoin reserve, it allows some $500 billion worth of other assets. SB 21 has that, too, but only for 24 of the 36 months mentioned above.

Lawmakers rally behind bill as it moves to Governor Abbott’s Desk for signature

The bill has yet to be voted on for a third and final time. With broad bipartisan backing from lawmakers, it is expected to move without a problem.

The bill now heads to the desk of Texas Governor Greg Abbott, who is expected to sign it. Abbott has previously expressed support for cryptocurrency projects and is widely expected to sign SB 21 into law.

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