Texas Proposes Strategic Bitcoin Reserve Amid Push for Crypto Sovereignty

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Texas Senate Invoice 21 proposes making a Texas Strategic Bitcoin Reserve managed by the State Comptroller. The reserve may maintain billions in Bitcoin and choose cryptocurrencies with over $500B in market cap. Texas positions crypto as a hedge towards inflation and a strategic monetary asset for state stability. Texas is making a daring transfer in cryptocurrency coverage. A brand new invoice launched within the state legislature goals to show Bitcoin right into a strategic asset—on par with gold or oil—by creating an official state-managed reserve.

Learn Extra: Texas Senate Approves Bitcoin Strategic Reserve Invoice

Texas Pushes for a State-Backed Bitcoin Reserve Texas Senate Invoice 21 (SB21) , referred to as the Texas Strategic Bitcoin Reserve and Funding Act , has been positioned on the Basic State Calendar for additional legislative evaluation. If handed, the invoice will set up a particular fund exterior the state treasury to amass and handle Bitcoin and different main cryptocurrencies.

The reserve can be underneath the management of the Texas Comptroller of Public Accounts and funded by state appropriations, devoted income streams, and crypto-native sources resembling forks and airdrops.

Importantly, any crypto asset acquired by this fund should have a minimal 12-month common market capitalization of $500 billion , successfully limiting the reserve to Bitcoin and doubtlessly Ethereum, relying on market circumstances.

Learn Extra: Texas Weighs Historic $250 Million Bitcoin Funding: A Bipartisan Initiative Defining the Path for Crypto Adoption

A New Monetary Hedge within the State Playbook SB21 frames Bitcoin as a strategic hedge —a monetary buffer that may shield Texas from inflation, fiat foreign money volatility, and macroeconomic shocks. The invoice states that cryptocurrency investments will improve the monetary safety of Texans by diversifying the state’s reserve holdings.

The fund is not only symbolic. With provisions for lively portfolio administration, chilly storage custody, and third-party directors, the reserve may turn into a sizable crypto treasury underneath skilled oversight.

Notably, the invoice permits the state to revenue from forks, airdrops, and staking rewards, doubtlessly including passive income streams. These earnings might be reinvested or used to offset administrative prices.

Why It Issues for the U.S. Crypto Panorama Texas is not only embracing Bitcoin—it’s institutionalizing it. Whereas different U.S. states like Wyoming have enacted crypto-friendly laws, Texas is the primary to suggest holding crypto at a state degree as a part of a strategic asset portfolio.

This transfer units a precedent: if profitable, different states could comply with , resulting in competitors in who can maintain probably the most digital wealth. It may additionally create a brand new battleground over federal vs. state management in monetary coverage.

It’s additionally price noting that the reserve can't be tapped for different makes use of with out legislative approval, including an additional layer of accountability.

Custody, Safety, and the Position of Chilly Storage The invoice requires that every one digital belongings be securely saved, probably in chilly storage wallets—offline techniques not linked to the web, providing safety from cyberattacks. Solely state-chartered or federally regulated monetary establishments could act as custodians.

This emphasis on institution-grade custody signifies the state is treating crypto belongings with the identical degree of threat oversight as conventional reserves.

The invoice additionally supplies the Comptroller authority to purchase, promote, trade, or retain crypto as any prudent investor would, signaling an intent to have interaction with crypto markets actively—not simply maintain belongings passively.

A Strategic Sign to the Trade Whereas SB21 has but to be signed into regulation, its development by the legislature alerts a pro-crypto stance by Texas policymakers.

Within the context of broader U.S. regulatory uncertainty, Texas is asserting monetary independence and innovation. If enacted, the invoice may place Texas among the many world’s first authorities entities to instantly maintain and handle Bitcoin at scale— doubtlessly influencing billions in future public sector crypto funding .