Texas has joined the trend of the states in the U.S. to stockpile Bitcoin. On Wednesday, May 21st, the Texas House of Representatives approved Senate Bill 21 and moved the bill to Governor Greg Abbott’s desk for a final decision.
The bill was introduced by State Senator Charles Schwertner and led in the House by Representative Giovanni Capriglione. It passed with a strong vote of 105 in favor and 23 against, showing wide support.
If signed into law, the state comptroller would be in charge of managing a crypto reserve that could include Bitcoin and other selected cryptocurrencies.
The plan is to use digital assets as a tool to boost Texas’s financial strength. Rep. Capriglione called it “a forward-thinking measure” that aims to treat digital assets as a real opportunity, not just a passing trend.
He told House members, “Texas can take a leadership role in the evolving digital economy.” The bill would also set rules for which digital currencies could be included, only allowing those that have maintained a strong market value for at least 24 months.
Although the bill has passed the House, the process isn’t over yet. Governor Abbott has ten days to sign it, veto it, or let it become law without signing. The legislative session ends June 2, giving lawmakers a tight deadline to finalize the bill. If the governor chooses to veto, the House’s strong vote could still be enough to override it.
However, not everyone is on board. Representative Ron Reynolds voted against the bill, saying it “offers little oversight” and could lead to risky investments. “I thought it was probably too volatile for us to really be doing it based at the taxpayers’ expense,” Reynolds said in an interview. Critics worry that the plan may benefit wealthy investors while exposing the public to the unstable nature of cryptocurrencies.
The bill doesn’t say exactly how much money would go into the crypto fund. However, language in the Senate budget may open the door for funding soon. Supporters like Lee Bratcher from the Texas Blockchain Council say the amount will be small and manageable. “It’ll be a negligible amount in the grand scheme of things for Texas,” Bratcher said last week.
Texas now follows in the footsteps of New Hampshire, which became the first state to set up a crypto reserve. However, Texas could be the first to actually put money into one. Similar proposals are being discussed in over 20 states, including Ohio and Arizona. With Bitcoin recently hitting $107,000, the timing of this bill is turning heads across the country.
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