Texas Takes Steps Towards Official BTC Reserve: Bitcoin Growth

Texas Takes Steps Towards Official BTC Reserve: Bitcoin Gains Ground in America

10 May 2025 at 10: 45

Reading time: 2 minutes

Texas' plans to create a financial reserve Bitcoin (BTC) are taking shape. What once started as a rumor among crypto enthusiasts is now taking serious turns in legislation. Texas is not the only state venturing into this digital currency; other regions are also experimenting with integrating cryptocurrency into their financial policies.

SB 21 moves closer to approval

On March 6, the Texas Senate voted in favor of SB 21. This week, the bill also received approval from the House Committee on Government Efficiency. With a 9-4, party-line vote, the bill now heads to the House floor for a vote. If it passes, it will be up to Governor Greg Abbott to sign it.

The law would establish a Texas Strategic Bitcoin Reserve. Managed by the state’s Treasurer, Glenn Hegar, the reserve would only be allowed to invest in cryptocurrencies that have had a market cap of at least $500 billion over the past XNUMX months. So far, only Bitcoin has met that requirement.

Republican Senator Charles Schwertner, who initiated the bill, released a version in January that focused solely on Bitcoin. In February, however, the bill was amended to allow for other cryptocurrencies if the market-value requirement were to be met in the future.

Governor Greg Abbott, a well-known proponent of the crypto industry, has previously pitched Texas as the “crypto capital of the US” and even accepted Bitcoin donations during his 2014 campaign.

Experiments were also heard in other states

On the same day that SB 21 passed through committee in Texas, the governor of Arizona signed a bill that takes a similar direction. Arizona wants to create a “Bitcoin and Digital Asset Reserve Fund” without using taxpayer money.

New Hampshire is also joining the trend. On May 6, a bill was signed into law that allows the Treasury to invest in cryptocurrencies with a market cap of over $500 billion. Florida, however, took a different path; on May 3, the House voted to remove two bills related to a Bitcoin reserve from the agenda.

The final vote on SB 21 in Texas is approaching, with the legislative year closing on June 2.

Frequently Asked Questions

What exactly does the SB 21 law entail?
SB 21 would allow for the creation of a “Texas Strategic Bitcoin Reserve,” managed by the state treasurer. Only cryptocurrencies with a market cap of at least $500 billion in the past year would be eligible for purchase, with Bitcoin currently the only one that meets this requirement.

Which other states are following Texas in this initiative?
Arizona and New Hampshire are also pursuing similar initiatives to invest in digital assets. Arizona has established a tax-free Bitcoin and Digital Asset Reserve Fund, while New Hampshire allows the state treasury to invest in cryptocurrencies above a certain market value.

When will there be a final vote on SB 21?
A final vote on SB 21 is expected within weeks, before the close of the legislative year on June 2.

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