Texas Bitcoin bill SB 21 removes $500M buying limit

Texas Senator Charles Schwertner refiled a strategic Bitcoin (CRYPTO:BTC) reserve bill, SB 21, which removes the previous $500 million annual purchasing cap, potentially paving the way for larger state-level Bitcoin investments.  

The refiled legislation also broadens its scope to include other crypto assets meeting specific market capitalisation thresholds.  

Announced on February 12, the bill replaces Schwertner’s earlier proposal, SB 778, and allows Texas to actively buy, sell, and manage crypto assets as an investment vehicle.  

It enables investments in other digital assets maintaining a market capitalisation of at least $500 billion over the past year, though Bitcoin is currently the only cryptocurrency that qualifies.  

Schwertner expressed his gratitude to Lieutenant Governor Dan Patrick for designating SB 21 as a top priority bill.  

"SB 21 would make our state the first to establish a Strategic Bitcoin Reserve and drive innovation, growth, and financial freedom," said Schwertner.  

The original SB 778 imposed a $500 million annual limit on Bitcoin purchases with restrictive oversight.  

SB 21 removes these limits, giving financial experts more control.  

Pierre Rochard, Vice President of Research at Riot Platforms, praised SB 21, stating it "removes the annual buying limit of $500 million, the legislature can appropriate as much as it wants to save BTC."  

Texas is among 19 U.S. states considering Bitcoin-related legislation.  

Arizona and Utah have advanced similar bills, while North Carolina proposed a measure to allow investment in Bitcoin exchange-traded products.  

Dennis Porter, CEO and founder of the Satoshi Act Fund, emphasised the bill's importance.