Overview

• Senate Bill 21, also known as the Texas Strategic Bitcoin Reserve and Investment Act, passed its second reading in the Texas House with a 105-23 vote.
• The amended bill requires eligible cryptocurrencies to maintain a $500 billion market capitalization for 24 months to qualify for inclusion in the reserve.
• A previously removed provision allowing private donations to the reserve was reinstated, but now limits donors to Texas residents, raising concerns about potential market manipulation.
• The legislation establishes a state-managed Bitcoin reserve fund, overseen by the comptroller and guided by an advisory committee of crypto experts, with biannual reporting requirements.
• If finalized, Texas would become the second state after New Hampshire to create a government-managed cryptocurrency reserve, pending House-Senate reconciliation and the governor's approval.