Texas on course to become a Bitcoin reserve: Governor gives the green light!

Texas on course to become a Bitcoin reserve: Governor gives the green light!

On May 21, 2025, the Texas Senate passed the bill SB 21, which provides for the creation of a strategic Bitcoin reserve, by a vote of 101 to 42. Texas could become the third US state to set up such a reserve, after New Hampshire and Arizona. Texas Governor Greg Abbott has already signaled his support for the law, which now only needs his signature to take effect. The law allows the state to proactively acquire Bitcoin and build a reserve from excess budget funds. Additionally, Bitcoin is held in cold storage.

Senator Charles Schwertner, who introduced the legislation, stressed the need to diversify the state's investment portfolio and find new ways to maximize state assets. Bitcoin, with a market capitalization of about $1.8 trillion, remains the only digital asset that meets the requirements of the law, which only considers cryptocurrencies with a market capitalization of over $500 billion. This number ensures that only established digital currencies are included in the reserve.

Details about the law SB 21

The law requires the reserve to be managed by the Office of the Comptroller, which is required to publish a performance report every two years. Funding for the fund would be secured through legislative appropriations and private donations. Senator Schwertner proposed appropriating $21 million to initiate the fund. To access accumulated funds, lawmakers must grant approval.

Comptroller Glenn Hegar, who manages over $100 billion in government investments, supports the bill and is exploring various opportunities for cryptocurrency investing. Currently, current law allows sovereign wealth funds to invest in SEC-regulated ETFs, but this has not yet happened. The bill is also seen as a response to concerns about federal spending and inflation, as 32 other states are considering similar legislative initiatives.

Positioning Texas as a leader

Through the legislative measures, Texas is positioning itself as a pioneer in the digital asset space. The decision to include Bitcoin as part of the public financing portfolio could not only expand financial scope but also create a strategic advantage in the emerging cryptocurrency market. Experts and politicians agree that this initiative can future-proof the state while optimizing state finances.

The Texas proposal could have a significant impact on the US cryptocurrency landscape. States are closely watching how the bill will develop as the adoption and promotion of digital assets becomes increasingly important in today's economy. Texas is at the forefront of a strategic realignment of public investments that will once again open up new ways to maintain financial stability and growth opportunities.