S.B. No. 21 establishes the Texas Strategic Bitcoin Reserve, a special fund aimed at investing in cryptocurrency, under the administration of the comptroller of public accounts. The bill introduces a new subchapter to Chapter 403 of the Government Code, defining key terms related to cryptocurrency, such as "Bitcoin," "cryptocurrency," and "cold storage." It outlines the purpose of the reserve, emphasizing its potential to enhance the state's financial resilience and serve as a hedge against inflation. The comptroller is granted the authority to manage the reserve, which will consist of funds appropriated by the legislature, revenue dedicated to the reserve, and any cryptocurrency acquired through purchases or airdrops.

Additionally, the bill includes provisions for the comptroller to contract with third-party entities for the reserve's management and to conduct independent audits. It mandates the establishment of a Texas Strategic Bitcoin Reserve advisory committee to provide guidance on the reserve's administration. The bill also stipulates that any cryptocurrency purchased must have a minimum average market capitalization of $500 billion over the previous year. The comptroller is required to report biennially on the reserve's holdings and management activities. The bill amends existing law to clarify that certain state funds, including those invested by the comptroller, are not subject to specific investment regulations.

Statutes affected:
Introduced: Government Code 2256.004 (Government Code 2256)
Senate Committee Report: Government Code 2256.004 (Government Code 2256)
Engrossed: Government Code 2256.004 (Government Code 2256)