Texas Lawmakers Push for Expanded Crypto Reserve

Texas lawmakers have reintroduced a bill, SB 21, to establish a Strategic Bitcoin Reserve with an expanded scope to include other high-market-cap cryptocurrencies. This new proposal replaces an earlier version, SB 778, with significant changes that grant the state more investment flexibility. State Senator Charles Schwertner, who spearheaded the bill, aims to position Texas as a leader in financial innovation and economic security. Lieutenant Governor Dan Patrick has designated SB 21 as one of the Senate’s top 40 priority bills, indicating strong institutional support for the move.

Key differences between SB 21 and SB 778 include the removal of restrictions limiting Texas to only purchasing Bitcoin. However, any additional assets must have a market capitalization of at least $500 billion for the past year, a threshold that currently only Bitcoin meets. Additionally, SB 21 establishes the reserve as an investment vehicle, allowing the state to buy, sell, and manage digital assets more dynamically. This shift gives greater authority to financial professionals, whereas SB 778 placed decision-making power primarily in the hands of state legislators with stricter oversight rules.

Riot Platforms vice president of research, Pierre Rochard, noted that the revised bill is significantly more bullish, removing the $500 million annual cap on Bitcoin purchases. This means the Texas legislature can allocate unlimited funds toward its Bitcoin strategy, reinforcing the state’s commitment to long-term adoption.

Texas is one of 19 U.S. states actively considering Bitcoin-related legislation, as an increasing number of local governments explore digital asset investment strategies. However, not all states are on board. North Dakota recently rejected a crypto investment bill, signaling ongoing regulatory caution among some lawmakers.

As Texas continues to push forward with its Bitcoin reserve plan, the proposed legislation could set a precedent for other states looking to integrate digital assets into their financial strategies. The bill's focus on financial innovation and economic security aligns with Texas' broader goals of fostering growth and attracting investment in the Lone Star State.