Texas House Approves Strategic Bitcoin Reserve Bill

5 months ago

KEY FACTS: The Texas House of Representatives passed Senate Bill 21 (SB 21) with a 101-42 vote, approving the creation of a state-level strategic Bitcoin reserve. The bill, authored by Senator Charles Schwertner and sponsored by Representative Giovanni Capriglione, allows the Texas comptroller to invest in cryptocurrencies with a market cap exceeding $500 billion, currently limited to Bitcoin. Following New Hampshire and Arizona, Texas would be the third U.S. state to establish such a reserve if Governor Greg Abbott, a known crypto advocate, signs the bill within 20 days.

Source: Seal of Texas House of Representatives

Texas House Approves Strategic Bitcoin Reserve Bill

The Texas House of Representatives passed Senate Bill 21 (SB 21) on May 21, 2025, approving the establishment of a state-level strategic Bitcoin reserve. The bill, which passed its third reading with a decisive 101-42 vote, now heads to Governor Greg Abbott’s desk for final approval or veto. If signed into law, Texas would become the third U.S. state to direct public funds into Bitcoin as part of a strategic reserve framework, following New Hampshire and Arizona. The passage of SB 21 marks a significant step toward integrating cryptocurrencies into the state’s financial strategy.

The Strategic Bitcoin Reserve Bill, officially titled the Texas Strategic Bitcoin Reserve and Investment Act, was authored by Senator Charles Schwertner and sponsored in the House by Representative Giovanni Capriglione (R-Southlake). The legislation aims to create a legal framework allowing the Texas Comptroller to establish a Bitcoin reserve and invest in select cryptocurrencies based on market capitalization criteria. Specifically, the bill permits investments in cryptocurrencies with a market cap exceeding $500 billion, a threshold currently met only by Bitcoin (BTC). This provision ensures that the state’s investments remain focused on the most established and widely recognized digital asset, minimizing exposure to the volatility of lesser-known cryptocurrencies.

Speaking on the House floor before the vote, Representative Capriglione described the bill as a “pivotal moment in securing Texas’s leadership in the digital age.” He emphasized that the legislation is not merely about embracing a trend but represents a “forward-thinking measure” to recognize digital assets as a strategic opportunity for strengthening the state’s fiscal resilience.

The bill’s passage follows a series of legislative milestones. SB 21 cleared the Texas Senate on March 6, 2025, with a 25-5 vote and advanced through the House Committee on May 7 with a 9-4 vote, demonstrating strong bipartisan support. The bill’s progress reflects growing momentum for cryptocurrency adoption at the state level, as lawmakers increasingly view digital assets as a hedge against inflation and a tool for economic diversification.

Texas is not alone in its pursuit of a state-level Bitcoin reserve. New Hampshire became the first U.S. state to establish a strategic Bitcoin reserve on May 6, 2025, after Governor Kelly Ayotte signed House Bill 302 into law. The legislation allows New Hampshire to invest up to 5% of its state funds in Bitcoin, capitalizing on the state’s reputation as a libertarian hub with minimal taxes and decentralized governance. Arizona followed suit, with Governor Katie Hobbs signing House Bill 2749 to establish a Bitcoin reserve funded through unclaimed property, though she vetoed a separate bill (SB 1025) that would have allowed broader investments in digital assets.

Other states, however, have faced challenges in passing similar legislation. Florida withdrew two crypto reserve bills (House Bill 487 and Senate Bill 550) on May 3, 2025, while Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma have seen Bitcoin-related bills fail to pass their respective legislative chambers. According to Bitcoin Laws, a platform tracking digital asset legislation, 47 strategic Bitcoin reserve bills have been introduced across 26 states, with 13 active bills at the federal level, underscoring the growing national interest in cryptocurrency as a reserve asset.

The movement to establish Bitcoin reserves has been boosted by federal-level initiatives. In March 2025, U.S. President Donald Trump signed an executive order proposing a “Strategic Bitcoin Reserve” and a “Digital Asset Stockpile,” signaling Republican support for integrating cryptocurrencies into national financial strategies. This federal push has inspired state-level efforts, with Texas emerging as a key player in the race to adopt Bitcoin as a reserve asset.

Governor Greg Abbott, who has 20 days to sign or veto SB 21, is widely expected to approve the legislation. Abbott has been a vocal supporter of cryptocurrency, previously declaring Texas as “the home of crypto mining” in a November 2024 social media post and expressing his ambition for the state to become the “crypto capital” of the U.S. His enthusiasm aligns with Texas’ efforts to attract blockchain businesses, including crypto mining operations, which have flourished due to the state’s favorable energy policies and regulatory environment.

If Abbott signs the bill, the Texas comptroller will be tasked with establishing the Bitcoin reserve, with findings due to the House Appropriations Committee by January 2026. This timeline sets the stage for a comprehensive review before the 89th Texas Legislature convenes, thus, paving the way for further legislation to determine the scale of Bitcoin investments. Lee Bratcher of the Texas Blockchain Council noted that while SB 21 establishes the reserve’s framework, separate legislation is being prepared to decide the amount of Bitcoin the state will allocate to the fund.

Despite opposition concerns, the bill’s strong bipartisan support—evidenced by the 105-23 vote on its second reading and the final 101-42 vote- suggests that the majority of lawmakers view Bitcoin as a viable addition to Texas’ financial portfolio.

As Texas awaits Governor Abbott’s decision, the state stands at a crossroads. Approving SB 21 could cement Texas’ position as a pioneer in the digital asset space, while a veto could delay its ambitions to lead the U.S. in cryptocurrency adoption. With the House’s decisive vote providing enough support to potentially override a veto, the bill’s passage seems likely, setting the stage for Texas to join New Hampshire and Arizona in redefining the role of digital assets in public finance.

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