Texas Takes a Big Step into the Future: A Bitcoin Reserve
The Texas Senate has passed a special law called Senate Bill 21. This bill wants to create a reserve of Bitcoin, a type of digital money. This is a big step for Texas, showing that it’s ready to use cryptocurrency. Let’s learn more about this new law and what it means.
What is the Bill About?
The bill, called Senate Bill 21, was suggested by a state senator named Charles Schwertner in January 2025. At first, it was only about Bitcoin, but later it was changed to include other digital assets that are worth at least $500 billion. The law wants to create a special fund outside the general treasury. This fund will let the Texas comptroller buy, sell, or invest in Bitcoin and other cryptocurrencies that meet the rules[1][2].
Why is the Bill Important?
People who support the bill say that having a Bitcoin reserve can help protect against economic problems and inflation, just like how gold is used in traditional money markets[1][3]. Senator Schwertner said that Bitcoin’s limited supply and how it can change make it a good thing to invest in[5]. Also, the bill is seen as a way for Texas to show it doesn’t agree with the federal government’s growing debt and to be a leader in the crypto world[2].
What Happened When the Bill Was Voted On?
The Texas Senate voted 25-5 to pass Senate Bill 21, showing strong support for the idea[1][3]. This happened while there’s more talk around the country about using Bitcoin in reserves, with even the U.S. President thinking about it[3]. If Texas becomes the first state to officially have Bitcoin as part of its money strategy, it could encourage other states to do the same[3].
Who Will Watch Over the Reserve?
No specific money has been set aside for this yet, but Senator Schwertner plans to ask for some, maybe around $20 million for the next two years[2]. The reserve will be watched over by a group of experts in crypto investing. These experts will be chosen by the comptroller to make sure the right decisions are made[2].
What Does This Mean for Texas?
Looking Ahead
The Texas Senate’s vote to pass Senate Bill 21 is a big moment for the state. By wanting to have a Bitcoin reserve, Texas is showing it’s ready to try new things with money and wants to be strong economically. Now, the bill goes to the Texas House to be looked at more. Everyone is waiting to see if Texas can make this new plan work and if other states will try to do the same.
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Sources:
– Cointelegraph
– Quorum Report
– Bitcoin Magazine
– Happy Scribe
– U.Today