On May 20, 2025, the Texas House passed Senate Bill 21 with a vote of 105-23 in its second reading, bringing it closer to establishing the first Bitcoin reserve in the state, opening up significant prospects for cryptocurrency.
Bipartisan Legislation and Support
Senate Bill 21, officially named the Texas Strategic Bitcoin Reserve and Investment Act, was proposed by Representative Giovanni Capriglione (Republican) as a 'pioneering measure' to view cryptocurrency as a strategic opportunity, enhancing the state's financial capacity. Before the vote, he emphasized that Bitcoin is not just a trend but also a 'hedge against inflation and economic volatility.' The bill allows the state financial regulatory agency to manage a special fund outside of the treasury, with biennial reporting and a crypto expert advisory board for support.
An amendment from Representative Linda Garcia (Democrat) increased the market capitalization requirement for crypto from 12 to 24 months, with a minimum threshold of $500 billion. With bipartisan support, the bill passed its second reading and is preparing for its third reading in the House.
Impact and Outlook
If passed and reconciled with the Senate version, the bill will reach the Governor, making #Texas the second state in the U.S. to establish a Bitcoin reserve, after New Hampshire in early May 2025. Arizona had intended to pursue this but was rejected by the Governor, only passing a law on non-identifying crypto. Texas, being a major crypto mining hub in the U.S. for the past two years, could solidify its position if successful.
With Bitcoin currently holding strong above $100,000, crypto fund inflows reached $3.4 billion last week, and a projected accumulation of $330 billion by 2029, alongside Ethereum ($2,600) growth, this legislation could boost long-term investment. In the next 2-3 years, if Texas leads, other states may follow suit, enhancing the role of crypto in state finance.
Challenges and Conclusion
The bill needs to pass a third reading and be reconciled with the Senate before the Governor's approval. However, this is an important step forward. With the potential to increase Bitcoin's value and market confidence, Texas could shape the future of crypto in the U.S., but success depends on the subsequent legislative process.
Risk Warning: Investing in crypto carries high risks due to price volatility and legal uncertainties. Please consider carefully before participating.