Texas Governor Greg Abbott has approved House Bill 4488 (HB4488), a new law that safeguards select state funds, including any Bitcoin reserve created outside the state treasury, from being moved into general revenue.
This means these funds are now protected from being swept into the state’s regular budget.
What Does HB4488 Do?
Under HB4488, the Texas government will ensure that certain special funds remain safe. These funds include the Texas Strategic Bitcoin Reserve, as well as others like the Texas Advanced Nuclear Development Fund and the Gulf Coast Protection Account.
These funds are now legally protected and will not be mixed into the general revenue.
In the case of the Texas Strategic Bitcoin Reserve, the law ensures that Bitcoin holdings, if established, cannot be used for other state budget purposes.
The legislation names other protected funds, which will be set up as separate entities, either inside or outside the state treasury, depending on the laws that create them.
The Future of the Texas Strategic Bitcoin Reserve
However, the Texas Strategic Bitcoin Reserve is not yet a reality. The reserve will only be legally created if Senate Bill 21 (SB21) is passed.
SB21 proposes that Texas can start investing in Bitcoin and other cryptocurrency assets that have a market value of at least $500 billion. Currently, Bitcoin is the only cryptocurrency that meets this requirement.
Governor Abbott has not yet decided on SB21. He has until June 22 to either approve or veto the bill, which was sent to him on June 1. This gives him 20 days from the end of the legislative session to act.
What Happens Next?
If SB21 is signed into law, it will authorize the creation of the Texas Strategic Bitcoin Reserve, which could make Texas one of the first states to hold significant Bitcoin assets.
If this happens, the Bitcoin reserve will be legally protected under HB4488, ensuring its protection and preventing it from being used for other state purposes.
Governor Abbott’s approval of HB4488 is an important step in protecting specific state funds, including a potential Bitcoin reserve. However, the future of this reserve is still uncertain, as it depends on the passage of SB21.
If SB21 becomes law, Texas could lead the way in holding Bitcoin as part of its state funds, setting a strong example for other states to follow.
FAQs
What is HB4488?
HB4488 is a new Texas law passed by Governor Greg Abbott that protects select state funds, including any Bitcoin reserves created outside the state treasury, from being used for general revenue.
What is the Texas Strategic Bitcoin Reserve?
The Texas Strategic Bitcoin Reserve is a proposed fund that would allow the state to hold Bitcoin as part of its official reserves, although its creation depends on the passage of Senate Bill 21.
What is Senate Bill 21?
Senate Bill 21 is a proposed law that would authorize Texas to invest in Bitcoin and other cryptocurrencies with a market value of at least $500 billion, which includes Bitcoin.
When does Governor Abbott need to act on Senate Bill 21?
Governor Abbott has until June 22 to sign or veto Senate Bill 21, which was sent to him on June 1.
Why is Texas interested in Bitcoin?
Texas sees Bitcoin as a potential asset that could be held as part of the state’s reserves, and it is taking steps to legally protect Bitcoin holdings if they are created.
