Texas Advances Bitcoin Reserve Plans as Senate Greenlights SB-21

07. Mar 2025 Posted by Laurent C. on News

Texas is edging closer to cementing its place in the crypto space, with the state Senate approving a bill to establish a Bitcoin reserve funded by public money.

On March 6, lawmakers voted 25-5 in favor of Senate Bill 21 (SB-21), pushing it forward to the state House, which has until May 24 to take action. While there’s time for deliberation, some legislators may fast-track the process, potentially sending it to Governor Greg Abbott’s desk ahead of schedule. If signed into law, Texas would become the first U.S. state to officially hold Bitcoin as part of its financial reserves.

What’s in the Texas Bitcoin Reserve Bill?

SB-21, originally introduced in January by State Senator Charles Schwertner, was initially a Bitcoin-exclusive proposal. However, a February revision broadened its scope, allowing for the inclusion of other digital assets. This amendment came shortly after former U.S. President Donald Trump’s Jan. 23 executive order, which called for a study on creating a national digital asset reserve.

The legislation would create the Texas Strategic Bitcoin Reserve, a separate fund from the state treasury, managed by the comptroller. The reserve’s purpose? Acquiring, holding, and managing Bitcoin and potentially other high-market-cap cryptocurrencies as part of Texas’ long-term financial strategy.

Funding for the reserve would come from multiple sources, including:

  • State-allocated funds
  • Investment earnings
  • Private donations
  • Bitcoin-related incentives such as airdrops and blockchain forks

To maintain financial prudence, the bill mandates that any cryptocurrency added to the reserve must have maintained a market capitalization of at least $500 billion over the past year. This effectively limits investments to established assets like Bitcoin. Additionally, individuals and organizations can voluntarily donate crypto to the reserve, though the state has discretion over accepting contributions.

The bill also grants the comptroller authority to invest, sell, or manage Texas’ Bitcoin holdings with the same responsibility expected of a “prudent investor.”

Texas Joins Other States in Pursuing Crypto Reserves

If SB-21 clears the Texas House and secures Governor Abbott’s signature, it will take effect on September 1, 2025. Abbott has previously voiced strong support for Bitcoin and blockchain technology, increasing the bill’s chances of becoming law.

Texas isn’t alone in considering a state-backed crypto reserve. It joins other states, including North Carolina, Oklahoma, Utah, Arizona, and New Hampshire, in advancing similar proposals.

Notably, Texas’ Senate approval came just a day after New Hampshire’s House Commerce and Consumer Affairs Committee passed its own crypto reserve bill. Meanwhile, on March 7, Trump signed an executive order formally establishing a Strategic Bitcoin Reserve and a Digital Asset Stockpile, signaling growing federal-level interest in state-led crypto initiatives.

Bitcoin as a Strategic Asset

For Senator Schwertner, Bitcoin represents a “valuable, scarce asset” that could help Texas strengthen its financial position. He argues that states must move beyond traditional reserves of physical cash and embrace digital assets as part of their financial strategies.

With momentum building, all eyes are now on the Texas House as it prepares to debate the proposal. If approved, the Lone Star State could set a precedent for other states looking to integrate Bitcoin into their financial frameworks.