Texas House Advances Bill for State Cryptocurrency Reserve
Fort Worth, TX – In a significant move towards integrating cryptocurrency into state financial practices, the Texas House of Representatives has passed a bill that would establish a state-managed crypto reserve. The measure, known as Senate Bill 21, received bipartisan support with a vote tally of 101 to 42, setting the stage for Texas to potentially become one of the nation’s first states to formalize a cryptocurrency investment strategy.
Legislative Support and Proposal
Senate Bill 21 was introduced by Republican Senator Charles Schwertner of Georgetown and aims to authorize the Texas State Comptroller to invest in cryptocurrency alongside traditional financial assets. The funding for this reserve would primarily derive from state budget allocations, as well as donations from private individuals and corporations.
Rep. Giovanni Capriglione (R-Southlake), a key supporter of the legislation, stated, "This reserve not only strengthens our fiscal sovereignty, but positions Texas as a forward-thinking state prepared for the evolution of global finance." He emphasized the importance of adapting to modern financial realities amid shifting global markets.
Oversight and Auditing
Under the provisions of SB 21, the state’s cryptocurrency reserve will be subject to regular third-party audits, with results to be reported to the Texas legislature every two years. This measure intends to ensure transparency and accountability as the state navigates the complexities of managing digital currencies.
The bill has already passed in the Texas Senate, where it was approved in March, and it is now poised for the final approval of Governor Greg Abbott.
Potential Economic Impacts
Proponents argue that incorporating cryptocurrencies like Bitcoin could help shield Texas from inflation and other market fluctuations. Brian Morgenstern, the director of public policy at Riot Platforms, one of the largest Bitcoin mining companies in the U.S., expressed confidence in the long-term viability of cryptocurrencies, stating, “Bitcoin is now one of the most valuable assets in the world. Short-term volatility is significantly outweighed by the longer-term track record of this asset.”
The legislation stipulates that the state can only invest in cryptocurrencies that achieve an average market capitalization of at least $500 billion over the previous 24 months. Consequently, this limitation primarily restricts Texas’s investments to well-established cryptocurrencies, notably Bitcoin, and potentially Ethereum, contingent on market conditions.
National Context
The initiative from Texas is part of a broader trend among U.S. states exploring the adoption of cryptocurrencies. Just weeks prior, New Hampshire became the first state to pass a bitcoin reserve bill into law. Additionally, former President Donald Trump has recently announced plans for a national cryptocurrency reserve, further highlighting ongoing discussions around the role of digital currencies in America’s future economic framework.
As Texas takes these steps toward institutional involvement in cryptocurrency, the ripple effects on state finances and broader economic implications remain to be seen. How this investment strategy will unfold, especially amidst fluctuating market conditions, will be closely monitored by both supporters and critics alike.
For further updates on the progression of Senate Bill 21 and other cryptocurrency-related legislation, stay tuned to KERA News.
Lucio Vasquez is a breaking news reporter for KERA News, providing timely coverage of significant events across Texas.
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