tl;dr
The Texas Senate Banking Committee has approved a bill to establish a state-managed Bitcoin and crypto reserve, which will now move to the full Senate for consideration. The bill, introduced by State Sen. Charles Schwertner, allows the Texas Comptroller of Public Accounts to acquire, manage, and tra...
The Texas Senate Banking Committee has unanimously approved a bill to establish a state-managed Bitcoin and crypto reserve, which will now move to the full Senate for consideration. The bill, introduced by State Sen. Charles Schwertner, allows the Texas Comptroller of Public Accounts to acquire, manage, and trade Bitcoin and other cryptocurrencies to protect state financial reserves from inflation and economic instability.
Similar initiatives are being explored in over 20 states, aiming to diversify financial holdings and hedge against economic uncertainties. While some states have advanced similar bills, others have rejected them due to concerns over the volatility and speculative nature of digital assets.
The Texas Senate Banking Committee unanimously approved a bill on Feb. 27 to create a state-managed Bitcoin and crypto reserve, sending the proposal to the full Senate for consideration. Senate Bill 21 (SB-21), introduced by State Sen. Charles Schwertner, authorizes the Texas Comptroller of Public Accounts to acquire, manage, and trade Bitcoin and other cryptocurrencies. Lawmakers have argued that holding Bitcoin could protect state financial reserves from inflation and economic instability.
Schwertner originally drafted the bill to focus solely on Bitcoin but revised it in February to include other digital assets. The change followed President Donald Trump’s Jan. 23 executive order directing a federal commission to evaluate the feasibility of a national digital asset reserve. The bill emphasizes Bitcoin’s potential to strengthen Texas’ financial security, stating that "Bitcoin and other cryptocurrencies can serve as a hedge against inflation and economic volatility."
Texas is among numerous states exploring the creation of Bitcoin reserves. As of February, more than 20 states had introduced proposals to allocate a portion of public funds to Bitcoin and other digital assets. These initiatives aim to diversify state financial holdings and hedge against economic uncertainties.
Other states, including Oklahoma, Arizona, and Utah, have introduced similar measures to diversify their financial holdings. However, not all efforts have been successful. States such as Montana, North Dakota, and Wyoming have recently rejected similar Bitcoin reserve proposals, citing concerns over the volatility and speculative nature of digital assets.