Senate Bill 21 authored by Sen. Charles Schwertner of Distsrict 5 unanimously passed the Senate Committee on Business and Commerce on Thursday, Feb. 27.
The bill would create the Texas Bitcoin Reserve. It now heads for the Senate Floor.
Schwertner, who is the committee’s chairman, contends that the reserve would allow Texas to diversify its investment approach and establish itself as the leader ad model for leveraging the benefi ts of an emerging asset.
“Out of control spending at the federal level has fostered distrust by the American taxpayer and resulted in a devastating national deficit,” Schwertner said. “In the throws of inflation and uncertainty, Texans’ are seeking alternatives to historical financial assets. Bitcoin is a financial asset that has proven itself through multiple boom and bust cycles,” Schwertner said. “It’s time to look at Bitcoin as a reserve asset and allow the State of Texas to conservatively allocate a small amount of reserves in cryptocurrency.”
Bitcoin, referenced as “digital gold” by the United States Treasury, offers unique advantages due to its limited supply and decentralized nature. This is in contrast to the federal government, which has an unlimited printing press and centralized control of the currency. With a fixed supply of 21 million coins, it’s a finite, scarce, and truly noninfl ationary asset, providing the reserve opportunities for significant price appreciation.
“Today’s vote was a critical first step in making a strategic investment in Texas’ financial future,” said Chairman Charles Schwertner. “A Strategic Bitcoin Reserve will extend Texas’ leadership and offer an economic advantage in the evolving digital economy. I look forward to the Texas Senate passing this important legislation.”
