Enrolled Bill Summary

Senate Bill 21, the Texas Strategic Bitcoin Reserve and Investment Act, amends the Government Code to establish the Texas Strategic Bitcoin Reserve as a special fund outside the state treasury to be managed and administered by the comptroller of public accounts. The bill sets out the composition of the reserve, which includes bitcoin and other cryptocurrency that maintain a specified minimum market capitalization and are purchased using money in the reserve, and authorizes the legislature to appropriate funds for deposit to the credit of the reserve. The bill authorizes money in the reserve to be invested with the state treasury pool but prohibits the comptroller from transferring money in the reserve to the state treasury unless authorized to do so by the legislature. The bill provides for the authority of the comptroller to take certain actions with respect to the reserve, including the following:

• contract with one or more third-party entities for the administration or management of the reserve;
• contract with a certified public accountant to perform an audit of the reserve;
• use derivatives, if it is determined to be in the best interest of the reserve;
• spend cryptocurrency or use the net proceeds from the sale of cryptocurrency to pay the reasonable costs associated with administering and managing the reserve; and
• as necessary for cash management, liquidate the reserve's assets and temporarily transfer money from the reserve to the state treasury.

The bill establishes the five-member, non-compensated Texas Strategic Bitcoin Reserve advisory committee to advise the comptroller regarding the administration and management of the reserve and provides for a biennial report that includes specified information relating to the reserve.