Texas Senate Banking Committee greenlights Bitcoin reserve bill for floor voting

The Texas Senate Banking Committee unanimously approved a bill on Feb. 27 to create a state-managed Bitcoin (BTC) 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. It states:

“Bitcoin and other cryptocurrencies can serve as a hedge against inflation and economic volatility.”

Pierre Rochard, vice president of research at Bitcoin mining firm Riot Platforms, testified in favor of the bill during a Feb. 18 public hearing preceding the committee evaluation.

He argued that Bitcoin’s transparent and auditable nature makes it a strong asset for public financial management. Rochard also warned that Texas must prepare for future economic downturns despite its current strong economy.

Nationwide legislative efforts

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. Oklahoma lawmakers recently advanced their Bitcoin reserve bill through a House committee, with the legislation slated for a floor vote next.

Similarly, Arizona’s Senate Finance Committee approved a bill permitting up to 10% of public funds, including pension systems, to be invested in cryptocurrencies. Utah is also progressing with legislation that would allow the state treasurer to allocate up to 5% of public funds to digital assets.

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.

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