Key Points
- Texas is progressing with Senate Bill 21 to establish a state-controlled Bitcoin Reserve.
- Ukraine is planning to introduce legislation for Europe’s first national Bitcoin Reserve.
Texas is on the brink of a historic moment with Senate Bill 21, an initiative to create a Bitcoin Reserve under the state’s control.
Texas’s Bitcoin Reserve Bill Progress
With cross-party support, the bill recently passed its second reading in the Texas House by a decisive 105-23 vote. It now awaits one last approval before being sent to Governor Greg Abbott.
The bill, influenced by other state initiatives and national momentum after former President Trump’s endorsement of state-level Bitcoin reserves, includes mechanisms like those used in New Hampshire to determine which digital assets are eligible.
Currently, only altcoins with a consistent $500 billion market capitalization over 24 months would qualify.
The bill’s journey from swift committee approval to Senate passage indicates a growing interest in state-level crypto-backed reserves. This positions Texas as a potential leader in digital asset adoption.
Impact on Texas’s Crypto Ecosystem
Texas’s move towards a formal Bitcoin Reserve originated in December last year with H.B. 1598.
The proposed legislation suggests that the reserve hold Bitcoin, and potentially other digital assets, as a strategic protection against inflation and economic uncertainty.
The state comptroller would have to submit biennial reports detailing the crypto holdings, their current value, and any changes, according to the House committee’s version.
An advisory panel of experienced crypto investors would assist in managing the reserve’s assets.
This legislative momentum comes after Texas’s emergence as a significant player in the U.S. crypto mining sector over the past two years.
However, the bill must pass a third reading in the House before it can be enacted. And since it was amended, the final version will need reconciliation between the House and Senate drafts before reaching the governor.
Texas Following New Hampshire?
If Texas successfully passes Senate Bill 21 into law, it could become the second U.S. state to establish a state-managed Bitcoin reserve, after New Hampshire.
Arizona came close, but its governor ultimately vetoed the effort, only passing a related bill about unclaimed crypto.
The concept of national or regional Bitcoin reserves is gaining worldwide attention.
Ukraine, currently in the midst of conflict and digital transformation, is preparing to introduce legislation to create its own Bitcoin reserve. This move positions Ukraine to become the first European country to pursue such an initiative, indicating that the race to secure strategic crypto reserves is not just a U.S. phenomenon.
