The state Senate just passed a bill to invest public funds in Bitcoin (BTC), which puts Texas at the center of a significant change in cryptocurrency policy. The bill passed with a vote of 25-2 and is now in the Texas House, which has until May 24 to act on it. If accepted, Texas could have the most state-backed Bitcoin reserves in the country. This would follow a growing trend of states across the U.S. adopting cryptocurrencies.
Rising State Bitcoin Reserves
Texas isn’t the only state considering investing in cryptocurrencies. More than twenty states are discussing bills that would let public money be used to buy Bitcoin. For instance, Michigan recently proposed a bill allowing the state treasurer to invest up to 10% of the state’s money in cryptocurrency and even lend the assets to earn extra cash.
Utah is another strong candidate for passing a law allowing people to trade in Bitcoin. Florida, Ohio, Missouri, and Kentucky have proposed bills to set up Bitcoin reserves or invest state funds in crypto-related businesses.
Possible Federal Impact on Texas Decision
While the Texas Bitcoin bill is being considered, reports say that President Trump is considering a plan for a national Bitcoin fund. Trump is likely to discuss how his government will handle Bitcoin and other digital assets at the White House Crypto Summit on March 7. Trump has hinted at a bigger crypto reserve that might include XRP, Solana, and Cardano. However, top officials think Bitcoin will still be the focus.
Issues for Texas Lawmakers
Texas Senator Charles Schwertner strongly backed the bill and called it a top priority, but resistance still exists. Some critics say that putting state funds into Bitcoin is risky because of its volatility. On the other hand, supporters point out that Bitcoin has a lot of room to grow in the future and that big banks are starting to use it more and more.
Conclusion
The date for Texas lawmakers to decide is May 24. They need to determine whether they will accept Bitcoin investments to make money because they are worried about how the market will change. Texas could become a leader in state-backed Bitcoin funds if the bill passes. This would set an example for other states to follow. Â
