The Texas House of Representatives has approved Senate Bill 21 (SB 21), paving the way for the state to become the third in the United States to officially hold Bitcoin in its treasury. The bill, which proposes the creation of a Strategic Bitcoin Reserve, now heads to Governor Greg Abbott’s desk for final approval. If signed into law, it would mark a major milestone in the integration of digital assets into public financial policy.
The legislation has garnered notable bipartisan support, reflecting a growing political consensus on the importance of embracing blockchain technology and digital currencies as long-term economic instruments.
SB 21 Passes with Strong Bipartisan Support
Senate Bill 21, authored by Senator Charles Schwertner, has successfully passed through three readings in the Texas House. It cleared its final hurdle with a 101–42 vote, underscoring the cross-party momentum behind the initiative. Earlier, it passed the second reading with an even more decisive 105–23 majority, signalling widespread legislative confidence.
Texas state representative Giovanni Capriglione, a vocal advocate for the bill, declared during the House session that this was a “pivotal moment in securing Texas’s leadership in the digital age.” He highlighted the bill’s role in establishing Bitcoin as a strategic asset with both modern relevance and traditional store-of-value qualities.
With this momentum, SB 21 is poised to establish Texas as a leading U.S. jurisdiction in crypto policy, setting a precedent for other states contemplating similar reserves.
Bitcoin Only Crypto to Qualify Under Strict Criteria
At the heart of SB 21 lies a focused approach: the state’s comptroller will be authorised to create and manage a reserve of Bitcoin, with strict criteria for any potential future crypto additions. The bill stipulates that only cryptocurrencies maintaining a market capitalisation above $500 billion for at least 24 consecutive months are eligible for inclusion.
Initially, the bill used a 12-month benchmark. However, an amendment was introduced to extend this timeframe to 24 months, making the threshold more robust and reducing the likelihood of speculative altcoins qualifying. Currently, Bitcoin is the only cryptocurrency that meets these stringent criteria, effectively excluding even major players like Ethereum from the reserve in its current form.
This conservative strategy reflects a deliberate choice to mitigate volatility risks and position Bitcoin as a digital analogue to gold, a safe-haven asset amid inflation and economic instability.
Texas Sets National Precedent Amid State-Level Crypto Momentum
Texas’s move aligns with a broader national trend as multiple U.S. states explore holding Bitcoin as a treasury asset. New Hampshire was the first to pass such a law, setting the stage for what appears to be a growing wave of state-level crypto adoption.
Supporters argue that holding Bitcoin could serve as a hedge against inflation and systemic economic risks. The concept has even attracted federal-level endorsement, notably from former President Donald Trump, who publicly supported the idea of states integrating Bitcoin into their reserves.
Despite growing interest, many similar efforts have faced hurdles. For instance, while Arizona passed a measure to permit Bitcoin holding, follow-up legislation to enable purchases was vetoed. Florida saw early bipartisan excitement fizzle out before laws could take effect. In this light, Texas’s progress backed by a pro-crypto governor in Greg Abbott, holds even greater significance.
If enacted, Texas would join a small but influential group of U.S. states shaping crypto-related public policy and financial infrastructure.
Operational Framework and Market Impact of the Reserve
Under the proposed law, Texas’s comptroller’s office would be tasked with managing the Bitcoin reserve, including overseeing its purchase, custody, and sale. The bill allows for the use of state funds and legislative appropriations to operate and maintain the reserve, suggesting that this is more than a symbolic move, it is a serious financial strategy.
The legislation also sends strong signals to the market. Following the passage of SB 21 in the House, Bitcoin’s price surged to $106,000, nearing its all-time high. Market analysts point to state-backed interest as a bullish signal, especially when it comes from a major economy like Texas.
The strategic reserve is expected to strengthen Texas’s image as a pro-innovation and tech-forward state, potentially attracting more blockchain companies and startups to relocate or expand within its borders.
Looking Ahead
With the final vote complete and bipartisan backing secured, the fate of SB 21 now lies with Governor Greg Abbott. Given his past support for digital innovation and crypto adoption, the bill is expected to be signed into law before the legislative session ends on June 2.
If approved, Texas will not only hold Bitcoin on its books, it will cement its place as a national trailblazer in the legitimisation of digital assets. In a world where financial systems are rapidly evolving, the Lone Star State may soon stand at the forefront of a new economic frontier.
