Key Takeaways
- Texas lawmakers refiled a Bitcoin reserve bill with expanded scope.
- Only assets with a $500B+ market cap for 12 months qualify.
- The bill removes a $500M annual Bitcoin purchase limit.
Texas state lawmakers have refiled legislation to establish a Strategic Bitcoin Reserve, modifying the previous version to permit broader cryptocurrency investments.
State Senator Charles Schwertner (R-TX) announced the new bill, SB 21, on Feb. 12, emphasizing its potential to drive financial growth and innovation.
Official statement
Schwertner stated:
SB 21 would make our state the first to establish a Strategic Bitcoin Reserve and drive innovation, growth, and financial freedom.
He also noted that Texas Lt. Gov. Dan Patrick designated the bill as one of the Senate’s top 40 priority bills.
Expanded scope
The new bill builds upon SB 778, a similar proposal introduced in January, which strictly limited the state to purchasing and holding only Bitcoin.
SB 21 expands the state’s authority, allowing for the buying, selling, and management of digital assets for financial stability.
However, eligible assets must have maintained a market capitalization of at least $500 billion for the past year—a threshold currently met only by Bitcoin.
Key changes
Unlike SB 778, which placed control in the hands of state legislators, SB 21 shifts authority to financial experts and removes the previous $500 million annual Bitcoin purchase limit.
Riot Platforms Vice President of Research Pierre Rochard called the change “very bullish”, highlighting that lawmakers can now allocate funds for Bitcoin reserves without a fixed cap.
National context
Texas joins 19 U.S. states considering Bitcoin-related legislation, with Arizona and Utah advancing similar bills beyond the House committee level.
Meanwhile, North Carolina recently proposed a bill to allow the state to invest in Bitcoin exchange-traded products.
