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Texas House Advances Bill for State Managed Bitcoin Reserve

Coin WorldWednesday, May 21, 2025 2:05 am ET

1min read

The Texas House of Representatives has taken a significant step forward in advancing Senate Bill 21, a measure aimed at establishing a state-managed Bitcoin reserve. The bill, which passed its second reading with a strong bipartisan vote of 105 to 23, is now set for its third and final vote. This legislation, if enacted, would position Texas as the second U.S. state to create a government-managed Bitcoin reserve, following New Hampshire.

An amendment adopted during the second reading requires that any eligible cryptocurrencies must maintain a market capitalization of at least $500 billion over a 24-month period. This stringent requirement is intended to ensure the stability and reliability of the assets included in the reserve. The bill, officially known as the Texas Strategic Bitcoin Reserve and Investment Act, outlines a framework for the state comptroller to manage crypto holdings as a "special fund outside the state treasury."

The bill's progress comes roughly two years after Texas established itself as a major crypto mining hub, consistently ranking as a top choice for crypto mining firms. The proposed legislation allows the reserve to hold Bitcoin and potentially other cryptocurrencies as a hedge against inflation and economic volatility. The comptroller would be required to submit a biennial report to the legislature detailing the value and changes in the crypto holdings, with guidance from an advisory committee comprising crypto investment experts.

Despite the strong bipartisan support and the bill's advancement to the third reading, the legislative session in Texas ends on June 2, leaving a narrow window for the final vote. Governor Greg Abbott, a known supporter of Bitcoin, is expected to play a pivotal role in the bill's potential enactment. However, past experiences in other states, such as Arizona, where the governor vetoed a similar bill, serve as reminders that the outcome is not guaranteed until the final vote is cast.

The Texas Strategic Bitcoin Reserve bill is part of a broader trend among U.S. states to explore the creation of local Bitcoin reserves. This initiative gained momentum after Trump endorsed the concept, and Texas' Lieutenant Governor identified it as a top priority. The bill's progress reflects the growing political support for cryptocurrency within the state and the nation. The crypto industry's political support remains robust, as evidenced by the success of the GENIUS Act despite fierce opposition. This support bodes well for the future of cryptocurrency initiatives in Texas and beyond.

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