Texas Advances Bill for State Bitcoin Reserve Amid Inflation Concerns

Texas has taken a significant step forward in its efforts to establish a state Bitcoin reserve with the advancement of the Strategic Bitcoin Reserve Bill, SB 21. The bill, which initially proposed a Bitcoin-exclusive reserve, has been amended to include a broader range of digital assets. This change aligns with a January 23 executive order from President Donald Trump, which mandated a federal commission to study the feasibility of a national digital asset reserve.

The bill, introduced by State Senator Charles Schwertner in January 2025, has successfully cleared a key committee stage without any amendments and is now set for a final vote before the full state legislature. The final decision is expected before June 2, when the state legislature adjourns. If passed, Texas would formally begin the establishment of a strategic Bitcoin reserve to support financial resilience during periods of economic instability.

The Texas Comptroller of Public Accounts is designated by SB 21 to oversee the acquisition, trade, and management of these state-held digital assets. The legislation stipulates that all transactions involving these digital assets must comply with the “prudent investor” standard—requiring demonstrated care, skill, and caution. The bill’s language identifies digital assets, including Bitcoin, as instruments Texas can use to potentially hedge against inflation and financial instability, supporting broader state goals of safeguarding public funds.

Pierre Rochard, Vice President of Research at Riot Platforms, offered insights during a public hearing for Senate Bill 21. Rochard, testifying before the committee, underscored the necessity for Texas to prepare for future economic uncertainties, despite its current strong economic position. He argued that Bitcoin’s inherently auditable ledger could bolster public trust and transparency in Texas’s management of the reserve, especially as confidence in conventional financial institutions is increasingly questioned.

The progress of SB 21 in Texas is not an isolated event but rather part of an emerging pattern among U.S. states. Other states like Utah and Arizona are also exploring Bitcoin reserves amid inflation concerns. This trend reflects a growing interest in digital assets as a means to enhance financial resilience and hedge against economic instability.