Texas passes bill to create strategic Bitcoin reserve
Texas legislature passes Bitcoin reserve bill, awaits governor’s approval
Texas is poised to become a national leader in Bitcoin adoption at the state level, following the passage of Senate Bill 21, officially titled the Texas Strategic Bitcoin Reserve and Investment Act.
Passed with a 105-23 vote in the House, the bill now heads to Governor Greg Abbott, whose prior enthusiasm for Bitcoin suggests it is likely to be signed into law.
If enacted, Texas will join New Hampshire as one of the few U.S. states to formally integrate Bitcoin into its treasury strategy—further solidifying the state's ambitions to become a blockchain innovation hub.
Key takeaways
- Texas House passed Senate Bill 21 with 105-23 support; now awaits governor’s approval
- Establishes a state-managed Bitcoin reserve fund outside the treasury
- Only cryptocurrencies with 12-month average market caps over $500B are eligible
- Assets must be held in cold storage; staking and derivatives allowed
Details of the Bitcoin reserve bill
The bill authorizes the creation of a strategic Bitcoin reserve, designed to provide “enhanced financial security” for Texans. Uniquely, the fund will operate independently from the state treasury, with full administrative oversight granted to the State Treasurer.
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Eligible cryptocurrencies must maintain a minimum $500 billion market cap over 24 months, ensuring high liquidity and reliability. Security is also emphasized—assets must be stored in cold storage to prevent unauthorized access.
Specifically, Bitcoin has a capitalization of $2,205,802,570,036. The price set a new ATN and exceeded $111,000.
BTC price dynamics (May 2025). Source: TradingView
Additionally, the legislation permits the use of staking and derivatives, provided they benefit the fund. The reserve can be temporarily liquidated to aid the state’s cash flow, but only under restricted conditions.
Texas builds on growing state-level Bitcoin momentum
The legislation follows similar moves by New Hampshire, which passed a comparable bill earlier this year, and Arizona, where crypto integration is actively expanding. Advocacy group Satoshi Action Fund—which helped draft the original model legislation—applauded Texas’ progress as part of a broader state-driven crypto movement.
Governor Abbott, who once said, “Texas wants to be the centerpiece” of global Bitcoin innovation, is expected to sign the bill. If so, it will mark a major shift in how state governments consider digital assets as part of public finance strategy.
We previously wrote that Florida recently withdrew two proposed bills that would have allowed public funds to be invested in Bitcoin—highlighting differing approaches across the nation.
