Texas Enacts Law Establishing Bitcoin Reserve
In a significant move towards digital currency adoption, the U.S. state of Texas has established a Bitcoin reserve with the passing of the Texas Strategic Bitcoin Reserve and Investment Act (SB 21). Governor Greg Abbott signed the bill into law yesterday.
The new reserve will be managed by the Comptroller of Public Accounts, the state's top auditor, and can only contain crypto assets that have had an average market capitalization of over $500 billion in the past 24 months, with Bitcoin being the only current asset meeting this criterion.
The extent of Texas's Bitcoin investments is currently unclear, but Governor Abbott's approval indicates a potential significant investment. Lee Bratcher, the founder and president of the Texas Blockchain Council, predicts that Texas will invest several million dollars in Bitcoin.
This move by Texas follows a growing trend among U.S. states, with 26 states having introduced Bitcoin reserve bills as of now. New Hampshire was the first to pass a bill allowing for the establishment of a Bitcoin reserve, while Arizona has created a framework for building a crypto reserve, albeit through the claim of 'abandoned' digital assets.
However, not all states are following suit. Recently, a law was enacted in Connecticut that explicitly prohibits the establishment of a crypto reserve. The Democratic governor of Arizona vetoed bills that would have allowed active Bitcoin purchases twice.
The number of states with Bitcoin reserve bills may increase, as 20 are still active. The Texas strategic Bitcoin reserve will be a separate fund outside the state budget, suggesting a commitment to digital currency investments.
Texas's move is particularly significant given its status as the largest Bitcoin mining location in the U.S. and its economy, which is on par with countries like the UK and regularly generates a budget surplus.
As the trend towards Bitcoin reserves continues, it will be interesting to see how other states respond and if more follow Texas's lead. The potential for digital currency investments offers a new avenue for state economies to grow and adapt in the digital age.
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