The Texas House of Representatives has passed Senate Bill 21 (SB 21), known as the Texas Strategic Bitcoin Reserve and Investment Act, during its second reading on May 21, 2025.
The bill, which garnered strong bipartisan support with a 105-23 vote, moves Texas closer to becoming one of the first U.S. states to formally integrate Bitcoin into its financial portfolio.
This development signals a growing recognition of digital assets as a strategic opportunity to bolster economic resilience, positioning Texas as a potential leader in state-level cryptocurrency adoption.
The bill, authored by Senator Charles Schwertner and sponsored in the House by Representative Giovanni Capriglione, aims to create a “Texas Strategic Bitcoin Reserve” managed by the state comptroller, currently Glenn Hegar.
This reserve would operate as a special fund outside the state treasury, allowing Texas to hold and manage Bitcoin and other qualifying digital assets.
To ensure stability, the legislation sets a high eligibility threshold: only cryptocurrencies with a market capitalization of at least $500 billion over the past 12 months can be included.
Currently, this criterion is met solely by Bitcoin, though some speculate Ethereum could qualify in the future depending on market conditions.
The passage of SB 21 reflects Texas’ aim to treat Bitcoin as a strategic financial asset, akin to traditional reserves like gold or oil.
Supporters, including Capriglione, argue that the bill represents a forward-thinking approach to diversify the state’s financial holdings and hedge against inflation, fiat currency volatility, and macroeconomic uncertainties.
The reserve would be funded through legislative appropriations, investment earnings, and voluntary donations from Texas residents, with additional revenue potential from forks, airdrops, and staking rewards.
These earnings could be reinvested or used to offset administrative costs, further strengthening the state’s financial position.
Texas is not alone in this endeavor.
The bill follows similar moves by New Hampshire and Arizona, which recently passed legislation to establish their own Bitcoin reserves.
New Hampshire became the first U.S. state to enact such a law on May 6, 2025, followed by Arizona on May 7.
Texas, however, stands out due to its economic scale as the world’s eighth-largest economy, making its entry into the crypto space a potentially transformative move.
The Texas Blockchain Council has hailed the bill’s progress as a historic step, noting that its passage could inspire other states to follow suit.
SB 21’s journey is not yet complete.
Having cleared the Texas Senate with a 25-5 vote on March 6 and a House committee with a 9-4 vote on May 7, the bill now awaits a third reading in the House.
If approved, it will require reconciliation of any amendments between the House and Senate versions before heading to Governor Greg Abbott for final approval.
Given the bill’s strong bipartisan backing and Abbott’s reported support, analysts are seemingly optimistic about its chances of becoming law.
The implications of Texas adopting a Bitcoin reserve are profound.
By institutionalizing cryptocurrency, the state could set a precedent for others, reinforcing Bitcoin’s legitimacy as a reserve asset.
As crypto industry participants Scott Melker noted via social media, the bill’s progress has generated significant excitement within the industry.
With the final vote looming, Texas is poised to make history in the evolving landscape of digital finance.