Texas lawmakers have approached formalizing the state’s Bitcoin Reserve.
On May 27, a joint conference committee of House members and Senators reached an agreement on the final version of Senate Bill 21 (SB 21), known as the Texas Strategic Bitcoin Reserve Act.
According to the committee, one of the most important points of discussion was the criteria for digital assets that are eligible to be included in the state reserves.
The Senate initially proposed that the sanctuary codes would maintain a market capitalization of $500 billion for 12 months. However, the House has adopted a more conservative approach, requiring that assets meet longer requirements periods.
The final bill will adopt the House stance and extend it beyond the $500 billion threshold for 24 consecutive months.
Another important change is the removal of the staking clause.
The House had previously added a language that allowed Texas Secretary to participate in staking, but the clause was removed from the final draft. As it stands, Texas is passively holding digital assets and avoiding staking yield generation.
Under SB 21, the Texas Secretary is permitted to work with external providers for asset management. These include qualified custodians with secure storage systems, liquidity providers to promote purchases, and independent, certified public accountants to audit the reserves. The bill also allows the use of derivatives if they are deemed beneficial to the fund.
The law also establishes a five-person strategic Bitcoin reserve advisory committee in Texas. The agency advises how to assess assets and recommends careful investment policies.
Additionally, the Secretary must publish detailed financial reports every two years, and will be updated by December 31st of each year.
Meanwhile, the committee:
“We cannot estimate the financial impact of the bill. It is unclear what budget will be made for the reserve and amount and value of the eligible cryptocurrency to be purchased.”
With the final edits being introduced, SB 21 is waiting for the final vote in both rooms before heading to Governor Greg Abbott’s desk. Abbott has not announced official approval, but his recent social media activities suggest increased support for Bitcoin adoption in Texas