Source: Twitter @BitcoinNewsCom; Compiled by Tao Zhu, Jinse Finance
The Texas State Senate overwhelmingly passed Senate Bill 21 (SB-21), a major step in integrating digital assets into the state's financial system.
The Texas State Senate voted 25 to 5 to pass the Texas Bitcoin Reserve Act, which allows the state to invest public funds in Bitcoin and other digital assets. The bill now heads to the Texas House of Representatives for debate, and then to Governor Abbott.
The senator who introduced the bill, Charles Schwertner, said Bitcoin can be a good hedge against inflation.
"We don't have piles of dollar bills and safes like in the Middle Ages. What we have is digital currency," Schwertner said during the Senate debate. He also compared Bitcoin to gold, saying its limited supply can preserve value in uncertain times.
Under SB-21, the Texas Comptroller will manage the Bitcoin reserve. The bill allows the state to hold digital assets with a total market value of at least $500 billion. Currently, Bitcoin is the only asset that meets this requirement.
Funding will come from legislative appropriations as well as private and corporate donations. The bill also establishes a Strategic Bitcoin Reserve Advisory Council, which will oversee the investments and publish a report every two years to ensure transparency and accountability.
Unlike proposals in other states, SB-21 has bipartisan support in Texas. Many Democrats and Republicans voted together to pass it.
Lieutenant Governor Dan Patrick strongly supports the bill, saying: "Bitcoin is often compared to digital gold, and as a key asset for Texas' future due to its fixed supply and decentralized structure."
But not everyone is convinced. Democratic Senator Roland Gutierrez is concerned about Bitcoin's volatility and wants to know why public funds should be used for this investment.
"When the economy is down, Bitcoin also goes down, the volatility of this thing is crazy," he said. Gutierrez also expressed concerns about the lack of regulation in the Bitcoin space, calling the investment a gamble.
Texas' Bitcoin reserve is set to launch, while other states like Arizona and New Hampshire are also exploring similar measures.
Due to fiscally conservative lawmakers, some states have faced hurdles, but Texas' approach - allowing but not requiring Bitcoin purchases - makes it more bipartisan.
At the federal level, there is also growing interest in state-controlled Bitcoin reserves. Former President Donald Trump recently signed an executive order establishing a U.S. Bitcoin Strategic Reserve.
SB-21 has passed the Senate, but the fight is not over. It still needs to pass the Texas House, where it will face a larger and more divided chamber.
The Texas House has 89 Republicans and 62 Democrats, and while many Republicans support Bitcoin-friendly policies, similar bills in other states have faced intraparty opposition.
If the bill passes the House and is signed by Governor Abbott, Texas would become the first state to establish a Bitcoin reserve. This could open the door for other states to follow suit and promote wider adoption of digital assets in public finance.
