Texas lawmakers are moving forward with legislation establishing a state-run Bitcoin reserve. The bill, SB 21, refines and expands on the previously proposed SB 778 by broadening investment opportunities beyond Bitcoin while removing the $500 million cap on purchases.
The legislation, read in the Senate on February 7, 2025, has now been referred to the Senate Finance Committee for review. If approved, the law could take effect immediately with a two-thirds majority vote or on September 1, 2025.
Also Read: BlackRock’s Bitcoin Exodus: A Tsunami of Outflows Shakes the Crypto Market
Texas Seeks to Lead in Digital Asset Innovation
Texas State Senator Charles Schwertner stated that SB 21 aims to establish Texas as a top player within the digital asset domain. The Texas Strategic Bitcoin Reserve under SB 21 gained authority to purchase Bitcoin and additional cryptocurrencies, which the state can trade and supervise between multiple financial transactions.
New provisions within the legislation allow investment in extra cryptocurrencies, which need to demonstrate a single-year marketplace value exceeding $500 billion. The specified criteria let legally established digital assets qualify for inclusion but exclude those of shorter market presence.
A major change in SB 21 nullifies the previous Bitcoin purchase restrictions of $500 million. After this update, legislators can now use modifications in market value and state financial targets to set the reserve’s size.
This legislation will facilitate blockchain innovation because it supports Texas’ digital economy development objectives.
Growing National Interest in Bitcoin Reserves
Texas is not the only state that has considered cryptocurrency as part of its financial strategy. According to industry expert Matthew Sigel, 17 states have introduced similar proposals to integrate Bitcoin into state reserves or pension funds.
While 16 of these bills remain active, a proposed measure in Wyoming failed to gain the necessary support. States such as Utah, Oklahoma, Ohio, and Illinois have advanced their respective bills to committee hearings, with Utah making notable progress by securing a favorable vote.
According to Sigel’s evaluation, the combined worth of Bitcoin states proposed to acquire would total about 242,787 BTC for $23.54 billion. The total Bitcoin stake from state government commitments would exceed U.S. government control of 198,109 BTC, showing how cryptocurrency institutions expand within state planning operations.
With SB 21 now in the hands of the Senate Finance Committee, its approval could set a precedent for other states looking to integrate Bitcoin and other digital assets into their reserves. The move underscores Texas’ commitment to financial innovation and its ambition to become a leading force in cryptocurrency investment.
Also Read: U.S. Senator Cynthia Lummis Renews Push for Strategic Bitcoin Reserve
