#TexasBTCReserveBill

The Texas Senate has recently approved Senate Bill 21 (SB 21), aiming to establish a Texas Bitcoin Reserve to diversify the state's financial assets. The bill passed with bipartisan support in a 25-5 vote on March 6, 2025.

Key Provisions of SB 21:

Establishment of the Texas Bitcoin Reserve: The bill authorizes the Texas Comptroller to invest state funds in Bitcoin and other cryptocurrencies with a market capitalization exceeding $500 billion over a 12-month period.

Creation of an Advisory Committee: A Strategic Bitcoin Reserve Advisory Committee will be formed to provide guidance on managing the reserve, ensuring informed decision-making.

Biennial Reporting: The Comptroller is required to submit a report every two years detailing the reserve's holdings and performance, promoting transparency and accountability.

Rationale Behind the Bill:

Proponents, including Lieutenant Governor Dan Patrick and State Senator Charles Schwertner, advocate that investing in Bitcoin offers a hedge against inflation and economic volatility. They believe that Bitcoin's limited supply and decentralized nature make it a valuable asset for the state's financial portfolio.

Next Steps:

With Senate approval secured, SB 21 will proceed to the Texas House of Representatives for consideration. If it passes there, it will be presented to Governor Greg Abbott for his signature to become law.

National Context:

This legislative move aligns with recent federal initiatives, notably President Donald Trump's executive order to establish a Strategic Bitcoin Reserve at the national level. The order mandates the U.S. government to retain approximately 200,000 bitcoins seized in legal proceedings to form the reserve.

Texas' proactive stance positions it as a leader among states exploring the integration of digital assets into public financial management. The outcome of SB 21 could set a precedent for similar initiatives nationwide.

For a visual overview of this development, you can watch the following news segment: