Texas is nearing a historic milestone with the passage of SB 21, a bill that would create a state-run Bitcoin reserve and potentially allow investments in other high-cap cryptocurrencies. The Texas House of Representatives approved the measure with a decisive 101-42 vote, sending the bill to Governor Greg Abbott for final approval.
If signed, Texas will become the third U.S. state to hold Bitcoin as part of its financial reserves, joining a growing list of jurisdictions exploring digital asset adoption at the government level.
A Bold Step Toward Financial Modernization
The bill, officially titled the Texas Strategic Bitcoin Reserve and Investment Act, empowers the state comptroller to invest public funds in Bitcoin—and in the future, other cryptocurrencies with a market capitalization above $500 billion for the past year. Currently, Bitcoin is the sole eligible asset under this criterion.
SB 21 also mandates the creation of a formal Bitcoin reserve fund, aimed at diversifying the state’s treasury holdings and reinforcing Texas’s role as a leader in digital asset innovation.
“This legislation is a strategic move to future-proof our economy,” said Rep. Giovanni Capriglione, who championed the bill in the House. Sen. Charles Schwertner, the bill’s sponsor in the Senate, highlighted its significance in placing Texas “at the forefront of the blockchain economy.”
Texas Doubles Down on Crypto
Texas has long positioned itself as a pro-crypto state, home to several major Bitcoin mining operations and a relatively permissive regulatory environment. Governor Abbott has expressed consistent support for crypto, even accepting Bitcoin donations during his gubernatorial campaign.
While some states, like Montana and Arizona, have rejected similar proposals over concerns about crypto’s price volatility, Texas is choosing to embrace the digital asset economy head-on.
The bill’s passage also coincides with Bitcoin’s bullish momentum, with the cryptocurrency recently surging past $109,000—adding further interest to the idea of holding BTC as a state-level hedge against inflation.
What Comes Next
Should Governor Abbott sign SB 21 into law, Texas will formalize a Bitcoin investment framework, further integrating digital assets into traditional public finance structures.
With a $2.7 trillion economy, Texas stands to significantly influence how other states view crypto adoption within government financial systems.
As Bitcoin moves further into mainstream finance, Texas’s bold move may spark a new wave of digital reserve strategies across the country.
