Texas Bitcoin Reserve Bill Advances to Final Vote

SB 21, a bill aimed at establishing a state-level Bitcoin Reserve in Texas, has successfully passed its second House reading with overwhelming support. The bill now requires one more vote and the signature of Governor Greg Abbott to become law. This legislation draws inspiration from other successful efforts, such as New Hampshire’s mechanism for adding new tokens to the Reserve. Currently, Texas proposes to allow altcoins that maintain a $500 billion market cap for a continuous period of two years.

The concept of a Bitcoin Reserve gained traction after President Trump endorsed it. Shortly after his inauguration, Texas’ Lieutenant Governor identified a Bitcoin Reserve as a top priority. Since then, SB 21 has progressed significantly and is now close to reaching the governor’s desk. The bill was amended to extend the consideration period for a digital asset’s market cap from 12 to 24 months, making it more challenging for assets to qualify.

Texas’ effort mirrors characteristics from other Bitcoin Reserve bills across the nation. New Hampshire was the first state to pass such legislation, and its bill shares similar language with SB 21. Although primarily focused on Bitcoin, SB 21 also permits other assets with a $500 billion market cap, subject to the 24-month restriction. The bill’s advancement does not guarantee its success, as the legislative session ends on June 2, and SB 21 must pass a final vote by then to establish the Bitcoin Reserve. However, the bill’s strong support is encouraging, and the final step could occur this week, given Governor Abbott’s long-standing support for Bitcoin.

Despite the optimistic signals, past incidents in other states serve as reminders not to take anything for granted. Arizona’s governor, for instance, signed a law allowing the state to hold BTC but vetoed two bills that would have enabled the purchases. Florida’s effort also showed early bipartisan support, but its Reserve bills did not progress very far. These examples underscore the importance of cautious optimism. Most state Bitcoin Reserve proposals have failed so far, and Texas’ SB 21 would be one of the very few survivors if it succeeds. Nevertheless, the success of the GENIUS Act, despite fierce opposition, highlights the strong political support within the crypto industry.