Texas Governor Greg Abbott signed the “Bitcoin Reserve Invoice” SB 21 into legislation on June 21, permitting the state to take a position an infinite amount of cash from the state’s fund into Bitcoin (BTC).
SB 21 creates the Texas Strategic Bitcoin Reserve and lets the Comptroller purchase BTC as long as the asset’s market cap exceeds $500 billion, a threshold that solely Bitcoin presently meets.
$2.2B allocation
With the proposal signed into legislation, Texas turned the third state within the US with an official Bitcoin reserve, becoming a member of New Hampshire and Arizona.
Nothing within the statute caps allocations, which means lawmakers might applicable the complete stability of the Financial Stabilization Fund. The ESF closed fiscal 2024 with $21 billion in money and investments, in accordance with the Comptroller’s annual money report and supplemental ESF reality sheet.
If legislators route the utmost, Texas alone might grow to be the most important public-sector Bitcoin holder within the US. The state might funnel as much as $2.1 billion in Bitcoin if it decides to allocate as much as 10% of its funds in BTC, as Arizona had supposed to with its failed invoice.
Along with New Hampshire, the overall state allocations might attain practically $2.2 billion.
Governor Kelly Ayotte signed Home Invoice 302 on Might 6, authorizing the treasurer to put any digital asset that has a market capitalization above $500 billion right into a strategic reserve.
The statute caps holdings at 5% of the state’s Income Stabilization Reserve Account. New Hampshire’s newest bond-offering paperwork checklist an account of $292.5 million for fiscal 2023, with the BTC funding ceiling representing about $14.6 million.
Arizona invoice fails
Arizona’s Bitcoin and Digital Asset Reserve Fund turned legislation on Might 7 through Home Invoice 2749. The measure directs unclaimed or seized digital property to a state-run pockets, which will be staked or utilized in airdrops, with the proceeds returning to the fund.
Nonetheless, there isn’t a report back to date on the quantity of crypto seized by Arizona.
The SB 1373 failed on Might 12 after Hobbs’ veto. The proposal would allow the treasurer to deploy as much as 10% of the Finances Stabilization Fund (BSF) into BTC as soon as enacted.
Legislative funds writers undertaking the BSF at roughly $1.5 billion for fiscal 2025, implying a potential Bitcoin allocation close to $150 million.
In consequence, if an identical invoice is accredited in Arizona, the funding quantity in Bitcoin could be boosted to over $2.3 billion.
