Texas Senate Approves Bitcoin Strategic Reserve Plan
The Texas Senate has approved the Bitcoin strategic reserve bill (SB-21) with a 25-5 vote on March 6, following an intense debate on the Senate floor.
State Senator Charles Schwertner, who introduced the bill, defended the proposal, emphasizing that it would strengthen Texas’ financial position by adding a scarce and valuable asset to its reserves.
“We don’t have stacks of dollar bills and safes like we did in medieval times. What we have is digital currency,” Senator Schwertner stated during the debate.
Supporters of the bill reassured skeptics that Bitcoin is not a competitor to the US dollar but rather a store of value similar to gold and a hedge against inflation. Schwertner further explained:
“I would argue, and put forth, that because of central intervention and manipulation of the supply of currency, in this case, the US dollar, the ability to spend money through printing money has caused the dollar to fall in value and fall in worth.”
He added that this inflation has eroded trust in the US dollar.
The bill is still awaiting the governor’s signature before becoming law. If enacted, Texas will be the first US state to establish a digital asset strategic reserve.
Initially introduced in January as a Bitcoin-exclusive proposal, the legislation was later revised in February to allow for the potential inclusion of other digital assets.
The modifications followed US President Donald Trump’s executive order on Jan. 23, which directed a commission to explore the feasibility of a “digital asset stockpile”, likely covering multiple cryptocurrencies.
Senator Cynthia Lummis of Wyoming, a strong advocate for a US Bitcoin strategic reserve, recently stated at the Bitcoin Investor Week conference in New York that states are likely to adopt Bitcoin reserves before the federal government does.
Lummis, who introduced the Bitcoin Act of 2024 in the US Senate last July, pointed out that federal adoption would face delays due to bureaucratic and procedural challenges.
Sources:
https://cointelegraph.com/news/texas-senate-passes-bitcoin-strategic-reserve-bill
https://capitol.texas.gov/tlodocs/89R/billtext/pdf/SB00021I.pdf#navpanes=0