Texas senators passed on Thursday a bill to establish a Bitcoin strategic reserve within the state. This brings the proposal closer to being enacted as the next step is to send it to the House of Representatives.
The bill—SB 21—proposes a "state-managed investment fund focused on Bitcoin and other high-market-cap cryptocurrencies."
SB 21 is different from an earlier Bitcoin bill dubbed H.B. No. Introduced by Texas Representative Giovanni Capriglione, No.
Both bills call for the government to keep a cryptocurrency stash. However, SB 21 is different because it will be kept outside of the state’s treasury. This would give authorities the ability to access the crypto stash. "a more flexible and investment-driven approach, potentially allowing Texas to capitalize on crypto market movements," According to Texas Policy Research.
H.B. No. The 1598 bill would have required lawmakers to purchase and store the largest cryptocurrency and then not touch it until at least five year.
In a debate before the vote on Thursday, Charles Schwertner (the senator who introduced the bill) argued that Bitcoins could be used to help combat inflation.
"Texas cannot expect to put their money in a 1% savings account and keep up with inflation," He said. "We need to be forward-thinking as individuals or forward-thinking when it comes to financial assets and the investment of those financial assets."
Several states in the United States are working to pass laws that would allow them to store Bitcoins and other crypto-currencies. On Sunday, President Trump announced that the U.S. will create an a "crypto reserve" Digital coins, such as XRP Solana Cardano and Cardano along with Bitcoin and Ethereum, are a great way to diversify your portfolio.
The president said he'd help the digital asset industry and set up a Bitcoin stockpile during his campaign. It isn't certain how easy lawmakers would pass a crypto reserve at national level.
Edited By Andrew Hayward
Editor's note: This story was updated after publication with additional details.
