Texas Senate Passes Bill to Establish $5 Billion Bitcoin Reserve Stocks Surge
1min read The Texas Senate has made a significant move in the cryptocurrency landscape by passing Senate Bill 21, which aims to establish a state Bitcoin reserve. This bill, approved with a 25-5 vote on March 6, 2025, seeks to create a reserve of $5 billion in cryptocurrency, marking a bold step by the state to integrate digital assets into its financial strategy. The bill received bipartisan support and is managed by the state government to hold Bitcoin and other cryptocurrencies with a market value of at least $500 billion, making it eligible for state budget appropriations.
The passage of SB-21 is part of a broader trend in Texas, where lawmakers have been actively exploring ways to leverage cryptocurrency. The state has already established the Texas Energy Fund, which offers low-interest loans to boost natural gas-fueled generation. This fund is seen as a complementary initiative to the Bitcoin reserve, as it aligns with the state's efforts to enhance its energy infrastructure and financial stability.
The strategic Bitcoin reserve is designed to provide a hedge against economic uncertainties and to diversify the state's financial assets. By holding a significant amount of Bitcoin, Texas aims to benefit from the potential long-term growth of the cryptocurrency market. This move is also seen as a way to attract more cryptocurrency-related businesses to the state, further boosting its economy.
The bill's passage has garnered attention from various stakeholders, including Treasury Secretary Scott Bessent, who has hinted at future plans for the United States to acquire a Bitcoin reserve at the federal level. This suggests that Texas's initiative could set a precedent for other states and potentially influence national policy on cryptocurrency.
However, the bill has also faced criticism from some quarters, with concerns that it could be exploited for political purposes. Despite these reservations, the Texas Senate's decision to move forward with the Bitcoin reserve bill underscores the state's commitment to innovation and its willingness to explore new financial frontiers. The bill still requires approval from the House of Representatives and the Governor's signature to become law.
