SB 21 – State Bitcoin Reserve

SB 21 establishes the Texas Strategic Bitcoin Reserve, a special fund outside the state treasury, completely managed by the Comptroller to invest in Bitcoin and other cryptocurrencies. While the bill could diversify Texas’ financial portfolio and hedge against inflation, the bill presents several risks. It funds a highly speculative and volatile asset, all at the cost of taxpayers. Moving these funds outside the treasury limits legislative oversight, reducing accountability and increasing the risk of mismanagement. Using taxpayer dollars to gamble on cryptocurrency is an unnecessary financial risk that undermines fiscal responsibility and limited government principles. The legislature should seek to lower regulations or barriers to cryptocurrency use and adoption, rather than using more of the people’s money in a new government fund. For these reasons, TFR opposes SB 21.