AUSTIN, Texas — Texas might turn out to be one of the primary states within the nation to take care of a reserve of Bitcoin and different cryptocurrencies underneath new precedence laws earlier than a Texas Senate committee.
Senate Invoice 21, authored by Senator Charles Schwertner, R-Georgetown, would allow the Texas Comptroller’s Workplace to amass, trade, promote, handle, and retain Bitcoin investments, in addition to different cryptocurrencies with a market capitalization of at the least $500 billion (Senator Schwertner mentioned solely bitcoin at present meets that threshold). Lieutenant Governor Dan Patrick named the invoice amongst his legislative priorities.
“This is the reason persons are reaching for alternate options to fiat forex as a result of all fiat forex ultimately goes to its pure value, which is the paper it is printed on,” Senator Schwertner mentioned in a listening to on Tuesday. “We will purchase land, we will purchase gold. I feel the state of Texas ought to have the choice of evaluating the best-performing asset of the final ten years.”
The Senate Enterprise and Commerce Committee left the invoice pending and not using a vote on Tuesday. Nonetheless, it is anticipated to go the committee, given the Republican majority and the truth that Patrick has named it a precedence.
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If it passes, Texas might be the primary state within the nation to create a state-level bitcoin reserve. A number of states have filed related laws this yr, as different digital currencies tackle a brand new life on the federal degree, exemplified by the prominence of Elon Musk in Trump Administration, a longtime advocate of cryptocurrencies.
SB 21 permits the Comptroller to take care of bitcoin reserves as allotted by the state legislature, in addition to by means of donations relevant to prior Texas regulation on donations or presents.
“I do have a fantastic concern with billionaire tech bros proudly owning branches of authorities. I do not need it occurring,” Senator Nathan Johnson, D-Dallas, mentioned within the listening to.
Throughout Tuesday’s listening to, Texas Comptroller Glenn Hegar inferred that he was considerably against the concept of “a donation” on a private degree however stopped quick of saying he would reject an extreme reward outright, including that he would see what the parameters of the laws would entail.
Governor Greg Abbott has not commented on this laws particularly however mentioned in a social media publish in November that “this session Texas ought to turn out to be the crypto capital.” Sarcastically, Patrick had simply final summer time referred to as for extra scrutiny towards knowledge mining and crypto mining facilities, in a prolonged social media publish addressing forecasts from ERCOT on the state’s demand for power quickly outpacing provide.
“We have to take an in depth take a look at these two industries,” Patrick wrote in June 2024. “We wish knowledge facilities, however it might probably’t be the Wild Wild West of knowledge facilities and crypto miners crashing our grid and turning the lights off.”
