Thomas Daniels
In a major step toward the state-level adoption of cryptocurrencies, the Texas Senate is scheduled to consider a proposed law that would allot a portion of the state’s $24 billion sovereign wealth fund to Bitcoin.
The Texas Strategic Bitcoin Reserve and Investment Act was adopted by the Texas Senate Committee on Business and Commerce with a resounding 10-0 vote. The initiative, led by Republican Senator Charles Schwertner, intends to establish Texas as a leader in financial diversification through Bitcoin.
After the bipartisan support, Schwertner said, “This vote represents a crucial first step in making a strategic investment in Texas’ financial future.” If approved, the bill would provide state legislators the ability to use their excess money to buy Bitcoin as part of Texas’ overall financial plan.
Texas is one of the increasing number of U.S. states looking to diversify their sovereign holdings by establishing Bitcoin reserves. Although Montana’s attempt to create a Bitcoin reserve was unsuccessful, similar plans are being advanced by states including Arizona, Oklahoma, and Utah.
Former President Donald Trump’s resurgence in politics and the cryptocurrency industry’s significant campaign contributions during the general elections have further contributed to Bitcoin’s growing prominence in financial and political discourse. Texas’ choice might serve as a model for further national acceptance as additional jurisdictions take steps to include Bitcoin into their banking systems.
