Texas is advancing legislation to establish a state-managed $BTC Bitcoin reserve. Senate Bill 21 (SB-21), introduced by Senator Charles Schwertner, proposes the creation of the Texas Strategic Bitcoin Reserve, aiming to diversify the state's financial assets and enhance economic stability.
The bill has gained significant traction:
Senate Committee Approval: On February 27, 2025, the Senate Banking Committee unanimously approved SB-21 with a 9–0 vote, allowing it to proceed to the full Senate for consideration.
Senate Passage: Subsequently, on March 6, 2025, the Texas Senate passed the bill with a 25–5 vote, moving it forward to the House of Representatives for further deliberation.
If enacted, this legislation would position Texas as a pioneer in integrating cryptocurrency into state reserves, potentially serving as a hedge against inflation and showcasing the state's commitment to embracing innovative financial instruments.
The bill outlines the establishment of a special fund outside the state treasury, granting it greater autonomy in investment strategies. The fund's composition includes legislative appropriations, dedicated revenues, purchased cryptocurrencies, investment earnings, and donations. Notably, any cryptocurrency acquired must have an average market capitalization of at least $500 billion over the preceding 12 months, ensuring the reserve's focus on established digital assets.
As the bill progresses through the legislative process, it reflects Texas's proactive approach to integrating digital assets into its financial framework, potentially setting a precedent for other states considering similar measures.
