The Texas Senate is set to hold its first public hearing to discuss the creation of a Strategic Bitcoin Reserve (SBR) in the state.
The hearing is holding today, February 18. It will see the states’ policymakers deliberate on diversifying part of Texas’ cash reserve to acquire Bitcoin.
Texas Strategic Bitcoin Reserve Bill
This development comes less than a week after the Senate’s secretary received the bill. For context, Senator Charles Schwertner introduced the Texas Strategic Bitcoin Reserve and Investment Act (SB 21) to the 89th Legislative Session.
The bill proposes that the Texas Comptroller of Public Accounts invests part of the state’s cash into Bitcoin, which will be managed alongside other state-owned assets.
Notably, the bill is advancing to the next level via a public hearing slated for today, where Texas policymakers will deliberate on whether to establish the Bitcoin reserve.
US States Considering Investing in Bitcoin
Meanwhile, Texas is not alone. Many U.S. states have shown interest in establishing Bitcoin reserves following the reelection of President Donald Trump. The U.S. President remains a major advocate of a national Bitcoin stockpile and has also created a working group to assess this initiative.
Over 15 U.S. states, including Ohio, Kentucky, Pennsylvania, and Georgia, are also considering investing in Bitcoin. While this trend is commendable, some analysts believe a state-level Bitcoin reserve may not impact BTC’s price.
Nexo’s dispatch analyst, Iliya Kalchev, argued that state adoption of Bitcoin only sends ripples, not waves, into the market. He suggested that its impact cannot be compared to how Bitcoin ETFs drove BTC’s price last year.
Conversely, popular brokerage company Bernstein speculated that the potential creation of an SBR at the U.S. federal level could usher in the next leg of Bitcoin’s bull market.
In a note to clients yesterday, the broker indicated that other countries may likely follow the U.S. to establish a Bitcoin reserve, leading to a global race among sovereign nations toward BTC adoption.