Texas Surges in U.S. States’ Race to Put Public Funds Into Crypto, Bitcoin (BTC)
Several U.S. states are intensifying their efforts to incorporate cryptocurrencies into public finance, following President Donald Trump’s announcement of a federal initiative aimed at establishing a strategic crypto reserve. Texas has emerged as a strong contender in this movement.
Recently, the Texas State Senate passed the SB 21 bill, which permits the state to allocate a portion of public funds towards digital assets, with a specific focus on Bitcoin (BTC). Texas Senator Charles Schwertner lauded Bitcoin’s resilience, citing its historical performance amid economic fluctuations. He posited that Bitcoin could serve as a crucial reserve asset in an era defined by “devastating national deficit,” alongside enduring challenges like inflation and economic uncertainty.
New Hampshire also made headlines by passing House Bill 302 through a state house committee, allowing up to 5% of public funds to be invested in Bitcoin and precious metals. This legislation garnered overwhelming support, passing with a vote count of 16-1, thereby advancing New Hampshire’s position in the ongoing debate regarding public cryptocurrency investments, despite still being a few votes from final approval.
Across the country, nearly a dozen states are exploring similar legislative options, though not all have experienced the same level of progress. As noted, at least five states encountered challenges or outright failures in pushing their respective bills forward. Utah is in a particularly critical position; poised for potential approval, it requires only one more vote from the state senate to send its bill to Governor Spencer Cox. However, time is of the essence as the current legislative session is set to expire, presenting an imminent deadline for Utah’s initiatives.
Should the Utah State Senate act before the deadline, the bill would reach Governor Cox’s desk, who has historically been in favor of blockchain policies. Conversely, if the bill fails to be approved in time, Utah’s attempts to invest public funds in cryptocurrencies will be delayed for another year, possibly shifting the spotlight to states like Arizona and Texas.
The push towards a strategic crypto reserve aligns with President Trump’s recently reiterated vision for integrating cryptocurrencies. He proposed that a national reserve could encompass various cryptocurrencies, including Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). This proposal raises questions among industry experts, with many arguing that Bitcoin remains the most suitable asset for a strategic reserve due to its established characteristics as a reliable store of value. The lack of clarity in Trump’s plan, particularly regarding the sourcing and management of these assets, has fueled skepticism within the crypto community.
These developments reflect a significant shift in how states view and approach digital currencies, signaling a growing acceptance of cryptocurrency in mainstream financial strategies. As legislation continues to evolve, the outcomes in states like Texas and New Hampshire will play a pivotal role in shaping future public sector investments in crypto assets.
