World’s 8th largest economy close to adopting Bitcoin reserve as Texas heads to final vote

Texas is advancing plans to create a government-backed Bitcoin reserve after lawmakers approved Senate Bill 21 (SB 21) in its second House reading on May 20.

According to voting records on the Texas Senate website, the proposal passed with a commanding 105 to 23 vote, reflecting rare bipartisan support. It now heads to a third reading, where a final vote could send the bill to the Governor for approval.

SB 21 seeks to establish a Strategic Bitcoin Reserve (SBR), making Texas one of the few US states to explore direct exposure to Bitcoin at the government level.

The implications of such a move are considerable. Texas is the world’s eighth-largest economy, valued at $2.6 trillion, surpassing Russia, Canada, and Australia. A state-level Bitcoin reserve in such a robust economy would mark a major milestone for crypto adoption in the US.

Dennis Porter, co-founder and CEO of the Satoshi Action Fund, emphasized the significance of the bill’s progress.

He noted that Texas could soon become the third US state to send a Bitcoin reserve bill to the Governor’s desk, following in the footsteps of New Hampshire and Arizona.

While the third reading is expected shortly, Porter suggested it’s rare for a bill to fail at this stage. However, he conceded that:

“Every state is different.”

Changes to the Texas Bitcoin reserve bill

Ahead of the vote, lawmakers introduced a significant amendment allowing other digital assets to be included in the reserve, but only if they meet strict requirements.

To qualify, a digital asset must maintain a $500 billion market cap for at least two years. This is double the original 12-month requirement and raises the barrier for inclusion.

Bitcoin Laws, a Bitcoin policy-focused firm, explained:

“This means [that] an asset must sustain the minimum market cap for longer. Making it harder for to qualify.”

This update effectively narrows the field as Bitcoin stands alone in meeting the threshold. It holds a market value of more than $2 trillion, making it the only eligible digital asset under the current criteria.

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