Texas becomes the first state to establish an independent Bitcoin reserve fund

Recently, Texas passed the SB 21 bill, becoming the third state in the United States to legislate the establishment of a state-level strategic Bitcoin reserve. Unlike Arizona and New Hampshire, Texas is the first state to set up an independent Bitcoin reserve fund supported by public funds.

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 treasurer and established outside the state financial system. Meanwhile, the passage of HB 4488 ensures that the fund is not subject to the state's periodic "fund sweep" mechanism, meaning it will not be diverted for general fiscal purposes.

Core Content of the SB21 Bill

The SB21 bill considers that Bitcoin and other cryptocurrencies have strategic potential to enhance the resilience of state finances and can serve as tools to combat inflation and economic fluctuations. The bill stipulates:

• The chief accountant can flexibly utilize assets for investment, exchange, sale, management, or holding activities.
• Reserve funds can be co-invested with the state treasury fund pool.
• The Treasurer shall not transfer reserve funds to the state treasury unless authorized.
• The investment asset range is limited to cryptocurrencies with an average market value of no less than 500 billion dollars in the past 24 months.

At the execution level, the Chief Accountant can enter into contracts with qualified custodians who possess cold wallet security custody technology and qualified liquidity providers who assist in asset purchase management. The bill also proposes a strategic Bitcoin reserve advisory committee composed of five members, responsible for asset valuation advice and investment policy design, among other tasks.

Exploration of Financial Sovereignty Under Policy Continuation

The congressman involved in drafting the bill stated that this bill is a continuation of the establishment of the first state-level precious metals depository in the United States about eight years ago. He believes that strategic Bitcoin reserves and gold depositories are functionally complementary, both providing scarce, valuable resources that can be transferred between individuals and effectively combating inflation.

Bitcoin Strategic Reserve's "Local Laboratory"

In response to the federal government's Bitcoin strategic reserve policy, several states in the United States are accelerating the review of various BTC reserve bills. Arizona recently passed the "Bitcoin Reserve" bill HB2324, which establishes a reserve fund for assets obtained through criminal asset forfeiture.

The lawyer from the Bitcoin Policy Research Institute pointed out that the core significance of strategic Bitcoin reserves lies in preserving the value of public funds, combating inflation, and ensuring that state governments can fulfill their obligations in the future. He believes that there are significant differences in the financial structures of various states, and some states may attempt more cutting-edge financial instruments, such as "Bitcoin municipal bonds."

The chairman of the Texas Blockchain Council stated that they are assisting cryptocurrency companies in establishing connections with the Texas Treasury Trust Management Agency, and will subsequently initiate a public and transparent bidding process. They hope that the Comptroller's office can directly manage physical Bitcoin and hold the private keys, rather than simply purchasing an ETF.

This series of measures reflects the active attempts of various states in the United States in financial innovation and sovereign exploration, providing an important practical foundation for the future development of cryptocurrency policies.