Texas is set to become the first U.S. state to establish a government-backed Bitcoin reserve following the passage of Senate Bill 21 (SB 21) by the Texas House of Representatives with a 101–42 vote. The bill now awaits the governor’s signature to become law.
SB 21 proposes the creation of the Texas Strategic Bitcoin Reserve, managed by the state comptroller, to acquire and hold Bitcoin and other cryptocurrencies with a market capitalization exceeding $500 billion—currently, only Bitcoin qualifies. The goal is to diversify the state’s investments, hedge against inflation, and strengthen economic resilience.
Key elements of the bill include:
Management and Oversight: The reserve would be overseen by the Texas Comptroller of Public Accounts, with input from a five-member advisory committee of cryptocurrency investment experts.
Security Measures: The assets would be stored in cold storage to guard against cyber threats.
Transparency: A report on the reserve’s holdings and performance would be submitted to the legislature every two years and made publicly available.
Supporters say the initiative could establish Texas as a leader in financial innovation and attract crypto-related businesses. Critics, however, raise concerns about the volatility of Bitcoin and the risks of investing state funds in digital assets.
If implemented, this move could pave the way for other U.S. states to consider similar strategies involving cryptocurrency reserves.
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