Texas Launches Strategic Bitcoin Reserve Program, Investing $10 Million

Recently, Texas passed the SB 21 bill, becoming the first state in the United States to implement a state-level strategic Bitcoin reserve. The state government has allocated $10 million for the purchase of Bitcoin over the next two years. This fund will be managed by the state comptroller and will operate independently of the state financial system.

At the same time, the signing of Bill HB 4488 ensures that the reserve fund will not be affected by the state's periodic allocation of funds, and the legal status of the fund will continue to exist even if no Bitcoin is purchased before next summer.

The SB21 bill considers that cryptocurrencies such as Bitcoin have strategic potential to enhance the financial resilience of the state and can serve as tools against inflation and economic fluctuations. The bill stipulates that reserve funds may be used flexibly, and the comptroller may invest, exchange, sell, or manage them according to prudent investment principles. Additionally, reserve funds may co-invest with the state treasury fund pool, but cannot be transferred to the state treasury without authorization.

On the execution level, the Chief Accountant can enter into contracts with qualified custodians who have cold wallet security custody technology and qualified liquidity providers who assist in asset purchase and management. The bill also allows for the use of derivatives and establishes a five-member advisory committee responsible for asset valuation recommendations and investment policy design.

Representative Giovanni Capriglione, who participated in drafting the bill, stated that this initiative is a protection of personal financial power and an effective means of combating inflation. He believes that Bitcoin reserves are functionally complementary to existing precious metal reserves.

Zack Shapiro, a lawyer at the Bitcoin Policy Institute, pointed out that the core significance of strategic Bitcoin reserves lies in preserving public funds, combating inflation, and ensuring that state governments can fulfill their obligations in the future. He also mentioned that states may adopt different Bitcoin integration strategies based on their differing fiscal structures.

Lee Bratcher, the chairman of the Texas Blockchain Council, revealed that relevant departments are holding meetings with interested companies to prepare for upcoming public bidding. They hope that the state government can directly hold physical Bitcoin instead of simply purchasing ETFs.

As states intensify their review of Bitcoin reserve bills, this "local laboratory" model may provide valuable insights for future federal policies. Texas's initiative will undoubtedly become a focal point of attention for other states and even at the federal level.