On 27 February, the Banking Committee of Texas Senate unanimously approved a bill to make a State -managed Bitcoin (BTC) and Crypto Reserve, so that the proposal was sent to the entire Senate for consideration.
Senate Bill 21 (SB-21), introduced by Senator Charles Schwertner, authorizes the Texas Comptroller of Public Accounts to acquire, manage and trade Bitcoin and other cryptocurrencies.
The laws have argued that keeping Bitcoin could protect the financial reserves of the state against inflation and economic instability. Schwertner originally drawn up the bill to concentrate exclusively on Bitcoin, but revised it in February to include other digital assets.
The change followed on January 23 -Executive Order by President Donald Trump, in which a federal commission was commissioned to evaluate the feasibility of a national digital assets reserve.
The account emphasizes Bitcoin’s potential to strengthen the financial security of Texas. It says:
“Bitcoin and other cryptocurrencies can serve as a cover against inflation and economic volatility.”
Pierre Rochard, vice -president of research at Bitcoin -Mijnbouwbedrijf Riot Platforms, testified for the bill during a public hearing of 18 February prior to the evaluation of the committee.
He argued that the transparent and auditable nature of Bitcoin makes it a strong asset to public financial management. Rochard also warned that Texas must prepare for future economic decline despite his current strong economy.
National legislative efforts
Texas is one of the many states that investigate the establishment of Bitcoin reserves. From February, more than 20 states had submitted proposals to allocate part of the public funds to Bitcoin and other digital assets. These initiatives are aimed at diversifying the financial participations of the state and to cover themselves against economic uncertainties.
Other states, including Oklahoma, Arizona and Utah, have introduced similar measures to diversify their financial possession. Oklahoma legislators recently implemented their Bitcoin reserve account through a house committee, with the legislation planned for a floor voice.
Likewise, the Senate Financing Committee of Arizona approved a bill that allocated up to 10% of public funds, including pension systems, to be invested in cryptocurrencies. Utah also claims legislation with which the treasurer of the State can allocate to 5% of public funds to digital assets.
However, not all efforts have been successful. States such as Montana, North Dakota and Wyoming have recently rejected similar Bitcoin reserve proposals, which have removed concern about the volatility and speculative nature of digital assets.
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