If enacted, the legislation would permit the Texas comptroller to create a Bitcoin reserve and invest in top-tier cryptocurrencies that meet specific market capitalization criteria.
The Texas House of Representatives has approved the third reading of Senate Bill 21 (SB 21), which proposes the establishment of a strategic Bitcoin reserve for the state. The bill passed with a vote of 101 to 42 and now awaits Governor Greg Abbott’s signature or potential veto.
Authored by Senator Charles Schwertner, SB 21 empowers the state comptroller to manage the reserve and allocate funds into any cryptocurrency with a market capitalization exceeding $500 billion over the prior 12 months. Currently, only Bitcoin meets this threshold.
Before the vote, Representative Giovanni Capriglione described the legislation as a defining moment, saying it would secure Texas’s leadership in the digital era by endorsing Bitcoin as a forward-looking asset with traditional store-of-value traits. The Senate previously passed the bill on March 6 with a 25–5 vote.
With a 2024 gross domestic product of $2.7 trillion, Texas is the second-largest economy in the U.S. and would rank as the world’s eighth-largest economy if it were an independent nation.
Mixed Outcomes for State-Level Bitcoin Reserve Proposals
Should Governor Abbott sign the bill, Texas would become the second U.S. state to formally allow a cryptocurrency reserve. New Hampshire was the first, approving House Bill 302 on May 6 under Governor Kelly Ayotte.
Other states have encountered pushback. Arizona Governor Katie Hobbs vetoed two crypto reserve proposals on May 13, citing concerns about market volatility. Similarly, Florida dropped two related bills on May 6, and Montana lawmakers voted down a digital asset reserve plan, labeling it too risky.
According to data from Bitcoin Laws, 47 strategic Bitcoin reserve proposals have been introduced across 26 states, with 13 more under consideration at the federal level.
Governor Abbott, a vocal supporter of cryptocurrency, is widely expected to approve SB 21. In a November 2024 social media post, he touted Texas as “the home of crypto mining” and suggested it should lead the nation in crypto innovation. Abbott has also accepted Bitcoin for campaign contributions since 2014.
