news.bitcoin.com
The Texas House passed Senate Bill 21 (SB 21) on Wednesday to create a state-managed bitcoin reserve, advancing it to Governor Greg Abbott’s desk for final approval or veto within 20 days.
Cryptocurrency in State Hands: Texas Legislature Passes Bitcoin Reserve Bill
The bill, titled the Texas Strategic Bitcoin Reserve and Investment Act, aims to position the state as a leader in cryptocurrency adoption by using bitcoin as a hedge against inflation. Managed by the Texas Comptroller, the reserve would invest only in cryptocurrencies with a 12-month average market capitalization of at least $500 billion—a threshold currently met solely by bitcoin.
Funding would come from legislative appropriations, donations, and investment earnings, with third-party custodians handling secure storage. SB 21 passed the House 101-42 after clearing the Senate 25-5 earlier in the session. If signed, the Comptroller must establish oversight rules and an advisory committee. The bill takes effect immediately with a two-thirds legislative majority or on Sept. 1, 2025, otherwise.
Proponents, including State Sen. Charles Schwertner, argue bitcoin offers financial resilience akin to gold. The crypto community celebrated the vote on social media, with posts garnering hundreds of thousands of views. Texas joins 24 states exploring similar legislation, signaling a national trend toward institutional crypto adoption.
The reserve could accept private bitcoin donations, minimizing taxpayer risk, and its success may influence broader market legitimacy. Gov. Abbott’s decision will determine whether Texas becomes the third U.S. state to implement a bitcoin reserve, following New Hampshire and Arizona. Implementation would require navigating volatility and security challenges, with biennial reports ensuring transparency.