Texas Senate Passes Bill to Establish Bitcoin and Digital Asset Strategic Reserve

The Texas Senate has taken a significant step in the realm of cryptocurrency by passing Senate Bill 21 (SB-21), which establishes a Bitcoin and digital asset strategic reserve. The bill, introduced by State Senator Charles Schwertner, was passed with a 25-5 vote on March 6, 2025, after thorough deliberation on the Senate floor. Schwertner argued that the legislation would help the state shore up its balance sheet with a valuable and scarce asset, similar to gold, rather than being a direct competitor to the US dollar as a global reserve currency.

The strategic reserve legislation was initially introduced in January 2025 as a Bitcoin-only bill, but it was later refiled in February to include other digital assets. This amendment followed US President Donald Trump’s executive order directing a commission to study the feasibility of a “digital asset stockpile.” The bill aims to create a special investment fund outside of the state treasury, with Bitcoin serving as the primary source of currency. This strategic reserve would allow the Texas Comptroller to acquire, manage, and sell cryptocurrencies, providing flexibility in investment strategies and positioning Texas as a leader in cryptocurrency adoption.

The passage of SB-21 marks a significant milestone in Texas's efforts to diversify its financial assets and hedge against inflation and economic volatility. By establishing a strategic reserve for Bitcoin and other cryptocurrencies, Texas aims to set a precedent for other states to follow. The bill's unanimous approval by the Senate Banking Committee earlier in February underscores the growing acceptance of cryptocurrency as a viable investment option. While other states have faced challenges with similar proposals due to concerns over cryptocurrency volatility, Texas continues to push forward with its innovative approach to financial management.

The upcoming vote on SB-21 will be crucial in determining the future of cryptocurrency in Texas and its potential impact on national financial policies. If passed, SB-21 would make Texas the first state to incorporate cryptocurrency into its financial strategy, potentially setting a precedent for other states to follow. The bill's passage would also align with broader efforts to diversify state assets and provide a hedge against inflation and economic volatility. The strategic reserve would allow the Texas Comptroller to acquire, manage, and sell cryptocurrencies, providing flexibility in investment strategies and positioning Texas as a leader in cryptocurrency adoption.