Strategic bitcoin reserve bill clears hurdle in Texas Legislature

Texas lawmakers are looking to create a strategic bitcoin reserve for the state, mirroring the one created by President Trump's executive order.

Why it matters: Texas would become the third state to have a place to put bitcoin, following New Hampshire and Arizona.

• Texas is by far the largest state for bitcoin mining.

Context: Senate Bill 21 would create a cryptocurrency investment fund outside the state treasury overseen by the Texas comptroller.

• A five-member advisory committee, including the comptroller, would set investment policies, and the comptroller would be required to publish a financial status report every two years.

The latest: The Texas House passed SB 21 last week, sending the bill back to the Senate, which has already approved it, with minor changes.

What they're saying: "Already the home of crypto mining, this legislative session Texas should become the crypto capital. Gov. Abbott looks forward to reviewing this proposal," Andrew Mahaleris, the governor's press secretary, told Axios in a statement.

Between the lines: The reserve is meant to diversify the state's investments with bitcoin.

• It could be "a hedge against inflation," according to the bill's sponsor, Republican Sen. Charles Schwertner of Georgetown.