Both chambers of the Texas legislature have passed a Strategic Bitcoin Reserve (SBR) bill, SB-21, with overwhelming support. Texas Governor Greg Abbot is expected to sign the bill into law when it arrives on his desk.
It will make Texas the second state with an SBR law on the books, after New Hampshire. Arizona’s state legislature passed a similar Bitcoin reserve bill, but it was vetoed by the governor. Across the country, there are more than 30 SBR bills at different points in the legislative process.
Governor Abbot has described himself as a “crypto law proposal supporter” and stated that “Texas should lead on this.”
SB-21 went through a long legislative process, with multiple rounds of amendments and adjustments from both parties in both the State Senate and House. After Governor Abbot signs it into law, the Texas Comptroller of Public Accounts will establish the crypto reserve using state investment funds.
One of the more controversial measures removed from SB-21 would have allowed for private donations to the fund. In a public hearing about the bill, Nathan Johnson, a Democrat Senator, said: “I don’t want the state to be a tool of an investor. I would want this to be limited to just state allocations. I don’t want billionaire tech bros owning a branch of the state government.”
As part of the legislation, SB-21 included a $21 million budget rider to jump-start the reserve funds. Cryptocurrency assets must have a market capitalization of at least $500 billion to be eligible for inclusion in the SBR.
