Austin, Texas — In a landmark move for cryptocurrency adoption, the Texas House of Representatives passed Senate Bill 21 (SB21) today, establishing the Texas Strategic Bitcoin Reserve. The bill, which cleared the House with 101 votes in favor and 42 against, now heads to Governor Greg Abbott’s desk for final approval. If signed into law, Texas could become the second U.S. state after New Hampshire to hold a state-managed Bitcoin reserve, signaling a growing acceptance of digital assets in public finance.
SB21, introduced by State Senator Charles Schwertner in late 2024, outlines a framework for the creation and administration of a Bitcoin reserve as a special fund outside the state treasury.
According to a Forbes report from February 2025, this structure grants the reserve greater autonomy and flexibility in its investment strategies, allowing Texas to diversify its financial portfolio with cryptocurrency. The bill passed the Texas Senate in March with a 25-5 vote, reflecting strong bipartisan support for the measure.
The legislation comes amid a broader national trend of states exploring Bitcoin as a strategic asset. A White House executive order issued on March 18, 2025, established a federal Strategic Bitcoin Reserve and a United States Digital Asset Stockpile, citing Bitcoin’s scarcity and security as a “digital gold” that offers strategic advantages. Investment firm VanEck estimates that if similar state-level initiatives across 18 U.S. states are enacted, they could collectively acquire $23 billion worth of Bitcoin—approximately 247,000 coins.
Proponents of SB21 argue that the reserve will enhance Texas’s financial resilience. “Bitcoin has the potential to hedge against inflation and economic volatility,” Senator Schwertner said in a statement earlier this year, as reported by Forbes. The bill also includes an amendment requiring eligible cryptocurrencies to maintain a market capitalization of at least $500 billion over a 24-month period, a measure aimed at ensuring the stability of the assets held in the reserve. As of May 2025, Bitcoin meets this criterion, with its market cap consistently exceeding $1 trillion.
Texas’s move builds on its established reputation as a hub for cryptocurrency activity. Since 2023, the state has attracted crypto miners and data centers due to its cheap electricity and favorable regulations, according to a report by CCN in April 2025. The state’s history with digital currencies dates back to June 2021, when Governor Abbott signed House Bill 4474 into law, recognizing the legal status of virtual currencies and integrating them into Texas’s commercial laws, as noted by Freeman Law.
However, the bill has not been without controversy. Critics in the Texas House raised concerns about the volatility of Bitcoin and its potential impact on state finances.
“We’re putting taxpayer money at risk with an asset that can swing wildly in value,” said Representative Donna Howard during the debate, citing Bitcoin’s price fluctuations in early 2025. Despite these concerns, the majority of lawmakers supported the measure, viewing it as a forward-thinking strategy to position Texas at the forefront of financial innovation.
The passage of SB21 also aligns with global trends, as nations like El Salvador have already adopted Bitcoin as legal tender and established their own reserves. In the U.S., New Hampshire became the first state to create a Bitcoin reserve earlier this year, setting a precedent for Texas and others to follow. If Governor Abbott signs the bill, Texas will begin the process of acquiring and managing Bitcoin assets, potentially influencing other states to accelerate their own cryptocurrency initiatives.
As the bill awaits the governor’s signature, all eyes are on Texas to see how this pioneering move will shape the future of digital assets in public policy. For now, the Lone Star State is poised to make history as a leader in the growing intersection of finance and technology.
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