Texas is on the verge of making a bold move in the world of cryptocurrency. Senate Bill 21 (SB 21), known as the Texas Strategic Bitcoin Reserve bill, has passed both the Texas House and Senate. Now, it awaits Governor Greg Abbott’s signature to become law.
What Is the Texas Strategic Bitcoin Reserve?
The bill aims to create a state-managed Bitcoin reserve. This reserve will allow Texas to invest in cryptocurrencies that have a market capitalization above $500 billion over the past 12 months. Right now, only Bitcoin meets this threshold, but Ethereum could qualify in the future.
The Texas Comptroller of Public Accounts will manage the reserve. This means the comptroller can buy, hold, stake, and even sell Bitcoin as needed. The reserve can be funded by state budget money, private donations from Texas residents and companies, and returns from investments.
Why Is Texas Doing This?
Texas is already a leader in Bitcoin mining, with nearly three times the mining capacity of any other U.S. state. Creating a Bitcoin reserve fits with Texas’s goal to be a hub for cryptocurrency innovation.
The reserve is designed to strengthen Texas’s financial independence. It offers a way to diversify state assets beyond traditional investments. This could help Texas hedge against inflation and economic uncertainty.
Governor Abbott has been vocal about his support for cryptocurrency. He has called Texas the “home of crypto mining” and wants the state to become the “crypto capital” of the U.S. His backing makes it likely the bill will become law soon.
What Happens Next?
After passing the House and Senate, the bill is now on the governor’s desk. The Texas Blockchain Council expects it to be signed without major hurdles. Once signed, the comptroller will begin setting up the reserve and managing investments.
The bill also requires regular third-party audits every two years. These audits will be reported to the state legislature to ensure transparency and accountability.
How Does Texas Compare to Other States?
Texas would be the third U.S. state to create a Bitcoin reserve, following New Hampshire and Arizona. This shows a growing trend of states exploring cryptocurrency as part of their financial strategies.
Summary Table: Texas Strategic Bitcoin Reserve Bill (SB 21)
| Feature | Details |
| Bill Name | Senate Bill 21 (SB 21) |
| Purpose | Create a state-managed Bitcoin reserve |
| Eligible Cryptocurrencies | Market cap > $500 billion over past 12 months (currently Bitcoin only) |
| Management | Texas Comptroller of Public Accounts |
| Funding Sources | State budget, private donations, investment returns |
| Auditing | Regular third-party audits every two years, reported to legislature |
| Legislative Status | Passed House and Senate; awaiting Governor’s signature |
| Significance | Texas becomes 3rd state with crypto reserve; largest Bitcoin mining state |
| Governor’s Position | Supportive, expected to sign |
Key Takeaways
- Texas is set to launch a Bitcoin reserve managed by the state comptroller.
- The reserve will be funded by public and private sources and audited regularly.
- This move places Texas among a few states embracing crypto in public finance.
- Governor Abbott’s support makes the bill’s passage likely.
- The reserve could help Texas diversify assets and strengthen financial sovereignty.
FAQs
Q: What cryptocurrencies can Texas invest in under this bill?
- A: Only cryptocurrencies with a market capitalization over $500 billion in the past year, currently only Bitcoin.
Q: Who manages the Texas Strategic Bitcoin Reserve?
- A: The Texas Comptroller of Public Accounts.
Q: How is the reserve funded?
- A: Through state budget appropriations, private donations, and investment returns.
Q: Has the bill been signed into law yet?
- A: As of May 2025, it is awaiting Governor Abbott’s signature.
Q: Why is Texas creating a Bitcoin reserve?
- A: To diversify state assets, hedge against inflation, and position Texas as a crypto leader.
Texas is taking a significant step toward integrating cryptocurrency into its financial system.
The Texas Strategic Bitcoin Reserve could become a model for other states looking to embrace digital assets.
Will this move inspire more states to follow?
Only time will tell. But for now, Texas is clearly staking its claim in the crypto world.
