On March 6, the Texas Senate passed the Bitcoin Strategic Reserve Bill SB-21 with a vote of 25 to 5. Texas State Senator Charles Schwertner, who introduced the bill, defended it in the chamber, stating that it would help Texas bolster its balance sheet with a valuable and scarce asset. He remarked, “We no longer stack dollar bills or safes like in the Middle Ages. What we have is digital currency.”
Supporting legislators also alleviated concerns regarding Bitcoin’s potential to compete directly with the dollar as a global reserve currency, arguing that Bitcoin is more akin to gold, serving as a hedge against inflation. Charles Schwertner further noted that due to central authorities’ intervention and manipulation of the money supply, the ability to spend through money printing has led to a decline in the value and purchasing power of the dollar, resulting in weakened confidence in the currency.
Subsequently, SB-21 must be submitted to the Texas House of Representatives, where the bill will be assigned to the relevant committee for review, modification, and hearings. After both the House and Senate pass the bill, it will also need to be sent to the Texas Governor for signing to become law. If SB-21 ultimately takes effect, Texas will become the first state in the U.S. to establish a strategic reserve for digital assets.
Progress of Bitcoin Reserve Bills in U.S. States
The bill was initially proposed in January, at which time it was limited to Bitcoin, with no mention of the acquisition of other digital assets. However, by February, the bill was resubmitted, expanding the scope to include other digital assets. According to statistics from bitcoinreservemonitor, a total of 35 states in the U.S. have submitted Bitcoin or cryptocurrency strategic reserve bills, but as of now, proposals from five states have been shelved.
