Texas Senate advances Bitcoin Reserve bill with bipartisan support

Source: Twitter @BitcoinNewsCom; Compiled by: Tao Zhu, Golden Finance

The Texas Senate passed Senate Bill 21 (SB-21) by a huge margin, a big step towards integrating digital assets into the state's financial system.

The Texas Senate passed the Texas Bitcoin Reserve Act by a vote of 25 to 5, which allows the state to invest public funds in Bitcoin and other digital assets.The bill will now be submitted to the Texas House of Representatives for debate and then to Governor Abbott.

Senator Charles Schwertner, who proposed the bill, said Bitcoin can be a good hedge against inflation.

"We don't have stacks 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 and donations from private individuals and businesses. The bill also creates the Strategic Bitcoin Reserve Advisory Committee, which will oversee investments and issue reports every two years to ensure transparency and accountability.

Unlike proposals in other states, SB-21 has bipartisan support in Texas. Many Democrats voted for it along with Republicans.

Lt. Gov. Dan Patrick strongly supports the bill, saying: “Bitcoin is often compared to digital gold, and due to its fixed supply and decentralized structure, it is a critical asset for Texas moving forward.”

But not everyone is convinced. Democratic Senator Roland Gutierrez is concerned about bitcoin's volatility and wonders why public money is being used for this investment.

"When the economy goes down, bitcoin goes down, too. The volatility of this stuff is crazy," he said. Gutierrez also expressed concern about the lack of regulation in the bitcoin space and called the investment a gamble.

Texas' bitcoin reserve is coming soon, while other states like Arizona and New Hampshire are working on similar measures.

Some states have run into roadblocks due to fiscally conservative lawmakers, but Texas' approach — which allows but doesn't require bitcoin purchases — makes it more bipartisan.

At the federal level, interest in state-controlled bitcoin reserves is also growing. President Donald Trump recently signed an executive order establishing the United States Strategic Reserve of Bitcoin.

SB-21 has passed the Senate, but the fight isn't over yet. It still needs to make it through the Texas House of Representatives, where it will face a larger, more divided body.

The Texas House of Representatives has 89 Republicans and 62 Democrats, and while many Republicans support Bitcoin-friendly policies, similar bills in other states have faced resistance within their party.

If the bill passes the House and is signed by Governor Abbott, Texas would become the first state in the U.S. to establish a Bitcoin reserve. This could open the door for other states to follow suit and promote broader adoption of digital assets for public finance.