Texas, the second largest state in the United States, has taken an important step towards creating the Bitcoin Strategic Reserve (BTC). The SB 21 bill was approved by the House of Representatives a day after approval of the second reading.
This step puts the bill on Gov. Greg Abbott’s desk for his signature or veto.
bill We propose to create a National Strategic Treasury Ministry, which is as Bitcoin as possible.. They are trying to strengthen the nation’s financial resilience.
The second reading of the project involved the introduction of revisions (fixes). This raised the eligibility criteria for cryptocurrencies included in the reserve. As the initial proposal said, instead of requiring a market capitalization of at least US$500 billion for 12 months, you should maintain that average for 24 months.
Bitcoin is the only cryptoactive beyond this capitalizationworth more than 2 billion US dollars. The size continues to be Ether (ETH), a US$300 billion Ethereum cryptocurrency, which does not reach the minimum rod established by the bill included in the bill.
Reserve administrators are responsible for the director of public accounts, authorized to acquire, manage and protect these assets, and are able to accept donations from both public and private sectors.
To ensure security, it is proposed to allow cold storage use and employ custodians deemed qualifying. Additionally, an advisory committee made up of crypto investment experts is responsible for providing guidance on the management of reserves.
As reported by Cryptonotics, the first reading of the state senators for the project was approved in March, with 25 votes in favor and five votes approved.
What are the scenarios for other US states?
Texas is trying to position itself as the third state of the United StatesFollow the steps of New Hampshire and Arizona.
New Hampshire began this trend with approval for the HB 302 project in early May. This has approved the state treasure to invest up to 5% of public funds in valuable and digitally active metals if they have a market capitalization of over USD 500 billion.
In Arizona, Gov. Katie Hobbs approved law HB 2749. This established the creation of Bitcoin and Cryptoactive Reserves, funded with funds deemed abandoned by the state after three years of inactivity. The measure does not consider direct investments in cryptocurrencies, but it seeks to provide state use for these assets.
In this regard, Also, changes in regulations have emerged in favour of the use of this type of assets in American power.. Oregon has approved the SB 167 initiative. This will modify the State’s Uniform Commercial Code (UCC) to recognize digital assets as effective support in financial transactions.
The Oregon initiative means that in this jurisdiction it is currently legal to use Bitcoin as a guarantee when someone seeks a loan or signs a commercial agreement. This means that if an individual or company needs funding, they can provide cryptocurrency as a guarantee, just like it does on real estate or vehicles.
The creation of the Bitcoin National Reserve in the United States, where President Donald Trump was created this year with the cryptographic effect of the government seizing criminal cases, motivated this scenario.
Failed proposal
It should be noted that not all US jurisdictions show the same enthusiasm. On the contrary, several similar projects face serious obstacles and have been directly rejected by their respective legislatures. Wyoming, Montana and Arizona are examples of states where attempts to establish BTC reserves have failed to flourish..
In Wyoming, Rep. Jacob Lee Wasserger has promoted a bill that proposed allocating 3% of the state mineral fund for Bitcoin investment. However, the initiative discovered resistance primarily by the Accounting Bureau, which raised concerns about the volatility inherent in cryptographic action. Wasserburger attributed this failure to educational barriers that limit the understanding of the subject matter of many lawmakers.
Montana also slowed down the proposal to create digital assets similar to Bitcoin Reserve. This time, it slowed down due to misunderstandings and fears about its implementation and risk. Rep. Curtis Schomer stressed the need to overcome resistance through structured education and collaboration with experts, arguing that integrating cryptocurrency into the state’s finances is a necessary strategy to diversify and protect the local economy from inflation.
Similarly, in Arizona, the HB 2749 project was approved, but the governor has rejected the proposals for SB 1025 and SB 1373, claiming that digital currency has a high speculative element that could put the nation’s finances at risk. Unlike HB 2749, these two initiatives allowed Arizona treasurer to invest in Bitcoin.
despite this, Texas will firmly advance the legislative process to establish a Bitcoin Strategic Reserve. This is demonstrated by the approval of today’s major instances. This occurred amid a rise in currency prices, with a new historic maximum of nearly 110,000 US dollars later registered.
(This article was updated several hours after it was published to communicate legislative approval for the third read of the project)
