Texas is one step closer to creating its own Strategic Bitcoin Reserve, following a key committee vote that advanced Senate Bill 21 (SB 21) to the House floor. If passed, the bill would authorize the Texas Comptroller to invest state funds in Bitcoin and other qualified digital assets, making Texas a leading U.S. state in crypto treasury adoption.
SB 21 Clears House Committee, Heads to Full Vote
On May 7, the Texas House Committee on Delivery of Government Efficiency approved SB 21 in a 9-4 vote, clearing one of the final legislative hurdles before the proposal reaches Governor Greg Abbott for approval.
Introduced by Senator Charles Schwertner (R) in January, the bill originally focused on Bitcoin alone. However, a February revision expanded its scope to include any digital asset with a minimum $500 billion market cap over the past year. Currently, only Bitcoin (BTC) meets that threshold.
If enacted, the bill would:
- Create a Texas Strategic Bitcoin Reserve
- Allow the state comptroller to manage and invest state funds in eligible crypto assets
- Position Texas as a frontrunner in integrating Bitcoin into state-level financial strategy
SB 21 had already passed the Texas Senate on March 6 by a 25-5 margin, reflecting strong support within the legislature.
A Wave of Crypto Legislation in Texas
SB 21 isn’t the only crypto-related bill under consideration in Texas. Lawmakers are exploring multiple avenues to incorporate Bitcoin into state operations:
- HB 4258, introduced in March, would permit the investment of up to $250 million from the state’s Economic Stabilization Fund into Bitcoin or other cryptocurrencies.
- SB 778, filed in February, proposes allowing tax payments and donations in crypto while requiring the state to hold any acquired Bitcoin for a minimum of five years.
These proposals reflect a growing appetite in the Lone Star State to treat Bitcoin as a strategic asset and hedge against inflation or centralized monetary risks.
A National Trend With Divided Outcomes
Texas is not alone. On May 6, Arizona Governor Katie Hobbs signed HB 2749, establishing a Bitcoin and Digital Assets Reserve Fund financed by unclaimed digital assets. A day later, New Hampshire Governor Kelly Ayotte signed HB 302, making the state the first in the U.S. to legally authorize public fund investments in Bitcoin. New Hampshire’s law permits up to 10% of the general fund to be allocated to digital assets with a market cap above $500 billion.
In contrast, seven U.S. states including Florida, Wyoming, and South Dakota have recently shelved or rejected similar Bitcoin reserve bills. Out of 37 Bitcoin reserve bills filed across 18 states, many have failed to gain sufficient legislative backing, reflecting divergent political and economic views on Bitcoin’s role in public finance.
Outlook: Texas on the Verge of a Bitcoin Milestone
With SB 21 headed to the full House floor, Texas could soon become one of the first U.S. states to officially hold Bitcoin in its financial reserves. If passed and signed into law, the move would send a strong message about Texas’s pro-crypto stance and may influence other states to follow suit particularly amid rising concerns about currency debasement and geopolitical financial instability.
As the U.S. continues to explore the future of digital asset adoption, Texas appears determined to lead the way, leveraging Bitcoin not only as a financial instrument but as a strategic economic asset.
