Sign Up on MEXCJust In: Texas Signs Strategic Bitcoin Reserve Into Law
Highlights
- Texas has officially created a Strategic Bitcoin Reserve, joining Arizona and New Hampshire.
- State Governor Greg Abbott signed Bitcoin Reserve bill SB 21 into law.
- Other US states are inching forward to their own Strategic Bitcoin Reserves.
Texas has become the third US state to formally create a Strategic Bitcoin Reserve with the historic signing of SB 21 into law. Armed with the newly minted law, the state of Texas will buy and hold Bitcoin via the office of the state comptroller.
Texas Creates Strategic Bitcoin Reserve Into Law
Emerging reports from Satoshi Act Fund CEO Dennis Porter indicate that Texas Governor Greg Abbott has signed the Bitcoin Reserve bill into law. The signing formally creates a Strategic Bitcoin Reserve for the Lone Star State, bringing an end to a lengthy legislative process.
Back in May, Texas senators passed the bill for a Strategic Bitcoin Reserve after its third reading in a majority 101-42 vote. The latest development sees the pro-Bitcoin Governor sign the bill into law after a bout of legislative horse trading.
Firstly, the new law establishes a state-level Bitcoin Reserve, authorizing the Texas Comptroller of Public Accounts to invest in the cryptocurrency. Furthermore, the SB 21 bill, signed into law, designates the reserve as a special fund outside the state’s treasury, supporting cryptocurrency investments.
The new law provides that the comptroller must hold the BTC in cold storage for at least five years before a sale. A five-member advisory committee will be formed and will publish a report on holdings every two years. Funding sources for the reserve will include voluntary donations and legislative appropriations. However, Bitcoin critic Peter Schiff has poked holes in the new law, claiming that the state will be precluded from buying BTC if prices fall.
“The bad news for Texas is that the bill establisshing a state-run strategic Bitcoin reserve was signed just signed into law,” said Schiff. “The good news is that once the market capitalization of Bitcoin falls below $600 billion, the state will be legally prohibited from buying any more.”
US States Are Hurtling Toward The Offering
Texas joins Arizona and New Hampshire as states with a Strategic Bitcoin Reserve offering. However, a growing number of states are making keen progress to pass bills into law authorizing the creation.
At the last count, over 24 states have introduced bills to set up a Strategic Bitcoin Reserve, including Utah, Illinois, and New Mexico. Others include Ohio, Pennsylvania, Alabama, and Iowa, with a handful of states rejecting proposals. Amid the push, Ohio has granted a Bitcoin tax exemption on payments under $200, guaranteeing the right to self-custody and validating transactions.
The states are following the lead of the White House to set up their versions of Strategic Reserves and other Bitcoin-friendly legislation. Rep. Tim Burchett has introduced a House Bill to convert Trump’s executive order for the Strategic Bitcoin Reserve into law.
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