Texas, Bitcoin Strategic Reserve Bill expected to automatically take effect on the 22nd... Effective without governor's signature

A bill to incorporate Bitcoin as a state-level strategic asset is expected to soon take effect in Texas, USA. Although Governor Greg Abbott has not signed Senate Bill (SB 21), it is expected to take effect as formal law on June 22 as the automatic enactment deadline approaches.

SB 21 is a bill that stipulates that the Texas treasurer uses general revenue surpluses to purchase Bitcoin and manage it under a level of transparency and supervision similar to the existing gold reserve management system. In particular, it limits holding only assets with a market capitalization exceeding $600 billion for two consecutive years for asset stability, and currently, Bitcoin is the only asset that meets these conditions.

Governor Abbott signed a total of 306 bills during the 89th regular legislative session on June 20, 15 of which were classified as major bills. However, SB 21 was not included in that list. The Bitcoin industry and supporters are somewhat disappointed with the omission of the Governor's signing ceremony.

Bitcoin legal expert Julian Farrer mentioned, “It is puzzling that other major bills held a press conference to proceed with the signing, but SB 21 quietly passed into the automatic enactment process.” However, he explained that under the Texas Constitution, if the governor does not exercise a veto or sign a bill 20 days after the legislative session ends, it automatically takes legal effect.

Interestingly, Abbott has previously publicly supported the cryptocurrency industry. He shared the news of SB 21’s passage through his official channel a few weeks ago, expressing Texas’ intention to foster blockchain technology. He has also consistently emphasized that the cryptocurrency mining industry can contribute to stabilizing the power grid as a part of the Texas economy.

The automatic enactment of SB 21 opens up the possibility of Texas becoming the first state to include Bitcoin as a legal asset in reserves, which could influence policy actions in other states.