Texas Sets Rules for Bitcoin Reserves, Removes Staking from Proposal

• Texas Prepares State Fund With Strategic Bitcoin Reserve
• Bill excludes cryptocurrency staking in final version
• Bitcoin to hold $500 billion value for 24 months

Texas lawmakers have finalized amendments to Senate Bill 21 (SB 21), which calls for the creation of a strategic Bitcoin reserve for the state. The joint committee, made up of representatives from the House and Senate, reached a consent on the criteria that will define which cryptocurrencies can make up this fund.

One of the central points of the debate involved the minimum market capitalization required for a digital asset to be considered eligible. The final version of the text follows the House proposal, requiring the asset to maintain a market capitalization equal to or greater than US$500 billion for 24 consecutive months. This criterion aims to limit the reserve to cryptos with a solid track record of stability and global adoption, such as Bitcoin itself.

The proposal also underwent a significant change with the removal of the clause that would allow the practice of staking. Initially suggested by the Chamber, this mechanism would allow the state to generate income from the digital assets in its portfolio. However, the final version opts for a more conservative model, holding the assets only passively, without seeking additional returns through participation in validation networks.

SB 21 authorizes the Texas Comptroller to enter into partnerships with specialized entities, such as qualified custodians, liquidity providers and certified independent auditors, to ensure security and transparency in the management of the reserve. The bill also allows the use of derivatives, if deemed advantageous to the state fund.

In addition, a Bitcoin Strategic Reserve Advisory Committee will be created, consisting of five members responsible for guiding the formulation of investment policies and asset valuation. Detailed financial reports will be published every two years, with updates by December 31 of even-numbered years.

With the final draft completed, the bill will now be put to a final vote in both legislative houses. Governor Greg Abbott has yet to make an official statement, but his recent posts suggest growing support for the integration of Bitcoin into the state’s economic strategies.