Strategic Bitcoin Reserve Bill Clears Texas Legislature
The Texas legislature has passed Senate Bill 21 (SB 21) to create a Strategic Bitcoin Reserve, making the state a leader in cryptocurrency adoption.
The bill was voted on by the Texas House with a 105-23 margin on May 20, 2025, following an initial vote with a 123-6 margin.
Texas Legislature Approves Strategic Bitcoin Reserve
If signed into law, Texas would become the third state in the United States of America to establish a strategic Bitcoin reserve, following New Hampshire and Arizona. The bill now awaits the signature of Governor Greg Abbott, which advocates like Lee Bratcher, president of the Texas Blockchain Council, are hoping for due to Abbott’s pro-Bitcoin stance.
As of May 22, 2025, no official statement from Abbott has been released.
SB 21 authorizes the state comptroller to invest in Bitcoin and other cryptocurrencies with a minimum average market capitalization of $500 billion over the previous year to ensure stability.
The assets will be stored in cold storage for security, with initial investments estimated in the tens of millions.
Texas Joins Crypto Wave with Strategic Bitcoin Reserve Plan
Texas, a hub for Bitcoin mining, is in line with SB 21 and a general national trend, following President Donald Trump’s January 2025 executive order directing a federal strategic Bitcoin reserve study.
The developments in Texas come as Bitcoin recently reached an all-time high of approximately $111,861.22. The token’s price movement in the last month shows the reserve’s potential for both gains and risks, with Texas Policy Research noting an indeterminate fiscal impact due to price fluctuations.
Bitcoin Price Chart (Source: TradingView)
The bill garnered bipartisan support, with a Senate vote of 25-5 and strong House backing. Bitcoin Advocates called it a “HUGE step for state-level crypto adoption,†which could potentially lead other states to follow and increase institutional trust.
Critics, however, warn of risks in allocating public funds to a volatile asset, raising questions about the priorities of public finance.
All Eyes on Abbott: Will Texas Seal Its Crypto Legacy?
Governor Abbott’s signature is expected in the coming weeks, which is the final step for SB 21. While the governor’s prior support for Bitcoin raises hopes, there has been no confirmation released to that effect so far.
The bill builds on Texas Blockchain Council efforts since 2022, showing long-term planning.
If enacted, SB 21 could strengthen Texas’s role in financial innovation and influence national cryptocurrency policy, with states like Oklahoma considering similar legislation.
The crypto community awaits Abbott’s decision, which could set a precedent for state-level adoption.
