With a 20-day countdown, Texas may become the third state in the United States to go into effect with the Bitcoin Reserve Act

Original source: Cryptoslate

Compilation: Blockchain Knight

According to the live broadcast of the House of Representatives, Texas lawmakers passed legislation on May 21 with 101 votes in favor and 42 votes against, approving the establishment of a state-level BTC strategic reserve.

According to the BTC-related bill, SB 21 now needs to be approved in the Senate again with additional amendments from the House of Representatives. The Senate had passed a previous version of the bill on March 5 by a vote of 25 in favor and 5 against.

Once the Senate votes to pass, the bill will be sent to Governor Greg Abbott for final approval before it can go into effect.

Once SB 21 reaches the governor's desk, the governor will have 20 days to sign or veto the bill. If the governor takes no action, the bill will automatically go into effect on the first business day after 20 days.

BTC Reserves

: The proposal would allow the state auditor general to use surplus funds to purchase BTC while following the same reporting rules as gold bars held in Texas treasury.

Rep. Giovanni Capriglione, one of the bill's main sponsors, told colleagues in the debate before the votes were counted, "Today is a pivotal moment for us to solidify Texas' leadership in the digital age through the Strategic BTC Reserve Act. Now, we embrace this modern asset with both traditional attributes and future potential."

He also said that BTC reserves will not only strengthen Texas' fiscal sovereignty, but also make the state a forward-thinking region that is ready for the evolution of global finance.

If the bill is approved by the governor, Texas will be the third state in the U.S., after Arizona and New Hampshire, to include public funds in the framework of the BTC Strategic Reserve.

The U.S. state of Texas can initiate a BTC purchase program only after the Comptroller General publishes procurement guidelines in the Texas Register and signs a storage contract that meets the location requirements of the Act.

Legislative Process

Senate passed SB 21 on March 6. Senator Charles Schwertner, the sponsor of the bill, argues that allocating a portion of the available cash in Texas to BTC could protect purchasing power during a currency shock.

According to the text of the bill submitted to the Governor, the Auditor General must disclose the date of acquisition, number of units, and total cost basis on a quarterly basis.

The bill does not set a limit on dollar terms. However, it requires that the BTC reserves must be deposited with an eligible entity in Texas, or a jurisdiction in the United States that recognizes BTC as property.

The bill also directs the Comptroller to study potential revenue streams associated with network engagement, including the Lightning Network payment channel used to collect state fees.

The findings need to be submitted to the House Appropriations Committee by January 2026 for review before the 89th Legislative Council.

Editor's note: This article was updated at 21:27 GMT to make it clear that the Senate needs to vote again on the House amendments to the bill.