Texas Bitcoin Reserve Bill: A Bold Move to Back State Reserves with BTC
2025-05-18
Texas is making headlines once again for Bitcoin. In a historic legislative push, the state is moving closer to establishing its own government-managed Bitcoin reserve.
Known officially as Senate Bill 21 (SB 21), the Texas Bitcoin Reserve Bill has advanced to a crucial stage in the legislative process, signaling that Texas could soon join a small group of U.S. states treating Bitcoin as a strategic financial asset.
The proposal is more than a symbolic gesture. It represents a clear intent by the state to position itself as a leader in crypto adoption at the government level.
With inflation concerns rising and questions about long-term fiscal stability, Texas lawmakers are exploring ways to diversify the state’s reserves. And according to supporters, Bitcoin offers a modern solution rooted in decentralization and predictable supply.
What the Texas Bitcoin Reserve Bill Proposes
Senate Bill 21, also known as the Texas Strategic Bitcoin Reserve and Investment Act, is designed to give the state the authority to purchase, hold, and manage Bitcoin as part of its financial reserves.
The bill was introduced by Senator Charles Schwertner and is sponsored in the House by Representative Giovanni Capriglione.
If passed, this legislation would allow the Texas Comptroller, currently Glenn Hegar, to oversee the management of Bitcoin assets.
These assets would be acquired through a combination of legislative appropriations, investment returns, and voluntary contributions from the public. The bill also allows for Bitcoin gained from forks and airdrops to be added to the reserve.
Importantly, the bill sets a high threshold for digital asset eligibility. Only assets that have maintained a market capitalization of at least $500 billion over the past 12 months would qualify—effectively limiting inclusion to Bitcoin at this time.
How the Bill Has Progressed So Far
The bill has already passed several significant legislative hurdles. It cleared the Texas Senate with a 25–5 vote on March 6 and later passed the Texas House Committee on Government Efficiency in a 9–4 vote on May 7. Both votes followed party lines and were passed without any amendments.
Now, the bill is awaiting its second reading in the Texas House of Representatives. This step is critical, as the state legislature is set to adjourn on June 2, leaving a limited window for SB 21 to reach a final floor vote. If the bill clears this next stage, it will move to the governor’s desk for final approval.
Why Texas Wants a Bitcoin Reserve
The proposal reflects Texas’s ongoing interest in integrating cryptocurrency into state policy. By treating Bitcoin as a strategic reserve asset, the state hopes to strengthen its financial resilience.
Supporters argue that Bitcoin can act as a hedge against inflation, economic instability, and the weakening value of traditional currency reserves.
This aligns with earlier comments made by Governor Greg Abbott, who has expressed a desire to make Texas the “crypto capital” of the United States. Notably, Abbott accepted Bitcoin donations during his 2014 campaign and has supported pro-crypto legislation in the past.
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A Trend Among U.S. States
Texas would not be the first state to adopt such a policy. New Hampshire and Arizona have already passed legislation establishing Bitcoin reserves.
New Hampshire’s House Bill 302 became law on May 6, allowing the state to invest in digital assets with high market caps. Similarly, Arizona recently approved a bill to create a Bitcoin and Digital Asset Reserve Fund, which will not rely on taxpayer funds.
By joining these states, Texas would further signal that the adoption of Bitcoin at the state level is no longer hypothetical. Instead, it is becoming a tangible part of fiscal planning and financial innovation.
Strict Conditions to Ensure Stability
While the Texas Bitcoin Reserve Bill opens the door to crypto investment, it does so with a cautious approach. The $500 billion market cap requirement ensures that only the most stable and widely adopted assets can be included in the reserve. At present, Bitcoin is the only digital asset that meets this condition.
This rule minimizes risk and maintains the state’s commitment to prudent financial management. Unlike speculative ventures, this bill aims to treat Bitcoin as a long-term asset with clear strategic value.
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FAQs
Q: What is the Texas Bitcoin Reserve Bill?
A: The Texas Bitcoin Reserve Bill, or Senate Bill 21, would allow the state to purchase, hold, and manage Bitcoin as part of its financial reserves.
Q: Who owns 90% of Bitcoin?
A: The text doesn't say 90%, but the largest holders of Bitcoin include its creator Satoshi Nakamoto, public companies like MicroStrategy and Tesla, investment funds like BlackRock, very wealthy individuals, and even some governments like the United States and El Salvador.
Q: Which country has a Bitcoin reserve?
A: Ukraine is reportedly close to making Bitcoin a national reserve asset.
Q: What is the U.S. Bitcoin reserve?
A: There's a proposed law called the BITCOIN Act that suggests the U.S. Treasury buy up to 1 million Bitcoin over five years and keep it for at least 20 years to help strengthen the country's finances.
Q: Does China hold Bitcoin?
A: As of the end of last year (2024), Chinese local governments were estimated to hold about 15,000 Bitcoins, making China the 14th largest holder globally.
Disclaimer: The content of this article does not constitute financial or investment advice.
