#TexasBTCReserveBill On March 6, 2025, the Texas Senate approved Senate Bill 21 (SB-21) with a 25-5 vote, aiming to establish a Strategic Bitcoin Reserve for the state. Introduced by State Senator Charles Schwertner, the bill proposes that the Texas Comptroller be authorized to invest state funds in cryptocurrencies like Bitcoin, positioning the state to diversify its financial assets and potentially hedge against inflation and economic volatility.
If enacted, Texas would become the first U.S. state to officially hold Bitcoin as part of its financial strategy. The bill now moves to the Texas House for consideration.
This legislative development aligns with recent federal initiatives. On March 6, President Donald Trump signed an executive order establishing a federal Strategic Bitcoin Reserve, directing the U.S. government to retain approximately 200,000 bitcoins seized in criminal and civil proceedings. This move reflects a growing recognition of digital assets' potential role in financial strategies at both state and federal levels.
However, the proposal has faced criticism. Concerns have been raised about the volatility of cryptocurrencies and the potential risks to taxpayer funds. Critics argue that investing in Bitcoin could expose the state to significant financial risks, given the cryptocurrency's unpredictable nature.
As the bill progresses to the Texas House, it remains to be seen whether it will be enacted into law, potentially setting a precedent for other states considering similar measures.