According to the committee, one of the most significant debate points was the criteria for digital assets eligible for inclusion in the state’s reserve.
The Senate originally proposed that crypto in the reserve sustain a $500 billion market capitalization for 12 months. However, the House takes a more conservative approach, requiring the assets to meet a longer requirement period.
The final bill adopts the House’s stance and extends the qualification period to 24 consecutive months at or above the $500 billion threshold.
The House had previously added language enabling the Texas Comptroller to participate in staking, but the clause was excluded from the final draft. As it stands, Texas will hold digital assets passively and avoid generating yield through staking.
Under SB 21, the Texas Comptroller will be authorized to work with external providers for asset management. These include a qualified custodian with secure storage systems, a liquidity provider to facilitate purchases, and an independent certified public accountant to audit the reserve. The bill also permits using derivatives if deemed beneficial to the fund.
The legislation also establishes a five-member Texas Strategic Bitcoin Reserve Advisory Committee. This body will advise on asset valuation methods and recommend prudent investment policies.
Additionally, the Comptroller is required to publish a detailed financial report every two years, with updates due by December 31 of each even-numbered year.
Meanwhile, the Committee:
“The fiscal impact of the bill cannot be estimated. It is unknown what appropriations would be made for the reserve and the amount and value of qualifying cryptocurrency that would be purchased.”
