Texas Senate advances plan for Bitcoin and crypto reserve
Texas Senate advances plan for Bitcoin reserve
The Texas Senate has passed a bill to create a Bitcoin and cryptocurrency strategic reserve, signaling a major shift in the state's approach to digital assets. Senate Bill 21 (SB-21) was approved in a 25-5 vote on March 6, positioning Texas as a leader in state-level cryptocurrency adoption.
Introduced by State Senator Charles Schwertner, the bill aims to diversify Texas’ financial holdings by accumulating Bitcoin and other digital assets, according to Cointelegraph.
Proponents argue that Bitcoin, often compared to gold, offers a hedge against inflation and economic uncertainty. Schwertner emphasized that the reserve would strengthen Texas’ balance sheet by incorporating a scarce and valuable asset.
Bitcoin as a financial safeguard
The initiative aligns with recent federal discussions on digital asset reserves. In January, President Donald Trump issued an executive order directing a feasibility study on a national cryptocurrency stockpile. Texas lawmakers later revised SB-21 in February to include other digital assets, expanding its scope beyond Bitcoin alone.
While some legislators raised concerns about cryptocurrency volatility, supporters pointed to Bitcoin’s growing adoption among institutional investors and its long-term value proposition. Additionally, lawmakers addressed fears that Bitcoin could compete with the U.S. dollar, asserting that its role is more akin to a store of value than a currency replacement.
If signed into law, the Texas Strategic Bitcoin Reserve will be managed by the state comptroller, with oversight on investment strategy and asset security. The bill now moves to the Texas House for further consideration, where it will face additional debate on implementation and risk management.
Texas’ move underscores a growing recognition of digital assets in government finance—potentially setting a precedent for other U.S. states to follow.
On a national level, Senator Ted Cruz is championing Texas as a global hub for Bitcoin innovation in the U.S., aligning the state’s resources with the growing digital asset industry. With three Bitcoin mining facilities in West Texas, Cruz is merging advocacy with action.
