SB 21 advances in the Texas House, nearing final vote for Bitcoin reserve creation.
Bitcoin reserve funding includes appropriations, investment returns, and donations.
Texas would be the third U.S. state with an official Bitcoin reserve if the bill passes.
Texas is advancing Senate Bill 21 (SB 21), which aims to establish a government-managed Bitcoin reserve. The bill recently reached a key stage in the Texas House of Representatives, bringing the state closer to joining New Hampshire and Arizona as U.S. states with official Bitcoin reserves. The Texas legislature has less than two weeks before adjournment on June 2, marking a critical deadline for the bill’s passage.
Legislative Progress and Upcoming Steps
SB 21, known as the Texas Strategic Bitcoin Reserve and Investment Act, has passed two significant stages. The Texas Senate approved the bill on March 6 with a 25–5 vote. Later, the House Committee cleared it on May 7 in a 9–4 vote, without any amendments. The bill now awaits a second reading in the House, a necessary step before the final vote. If it passes, it will proceed to a third reading and a final floor vote. Following approval by both chambers, the bill will go to the governor’s desk for signing.
The legislation authorizes Texas to purchase. hold, and manage Bitcoin within a state-run reserve. The bill treats Bitcoin as a strategic financial asset designed to protect against inflation and economic fluctuations. It aims to enhance the state’s long-term financial stability by diversifying assets with Bitcoin.
Funding for the reserve would come from legislative appropriations, returns on investments, and voluntary donations from residents. It also includes Bitcoin or qualifying digital assets obtained through forks or airdrops. However, the bill specifies strict eligibility criteria for digital assets included in the reserve. Any asset must have maintained a market capitalization of at least $500 billion over the previous 12 months. Currently, only Bitcoin meets this requirement.
Context Within U.S. States
If enacted, Texas would become the third state in the U.S. to create a formal Bitcoin reserve. New Hampshire led the way with House Bill 302 (HB 302), passed on May 6. Arizona also maintains a strategic Bitcoin reserve.
The bill’s sponsors include Senator Charles Schwertner, who authored SB 21, and Representative Giovanni Capriglione, who sponsors it in the House. Dennis Porter, CEO of the Satoshi Action Fund, emphasized that the second reading in the House is a critical step before the final vote.
https://twitter.com/Dennis_Porter_/status/1923818605013238128
The Texas legislature is set to adjourn on June 2. If SB 21 does not pass before then, it will expire and require reintroduction in a future session. The bill’s progress in the coming days will determine whether Texas joins a growing group of states integrating Bitcoin into public financial strategy.The bill reflects Texas’s broader crypto-friendly stance. The initiative to create a Bitcoin reserve aligns with efforts to modernize the state’s financial assets while considering economic risks and opportunities linked to cryptocurrency.
