Texas Moves to Establish Bitcoin Reserves
Texas is on the verge of making Bitcoin part of its official reserve strategy. Senate Bill 21 has cleared the House with a vote of 101-42. The next step is approval from Governor Greg Abbott.
What the Bill Includes
The Texas Strategic Bitcoin Reserve and Investment Act would allow the state to buy digital assets. But only those with a $500 billion market cap maintained over the past year. Right now, only Bitcoin meets that standard.
The bill directs the comptroller’s office to manage the Bitcoin holdings. It’s a step aimed at modernizing how Texas handles its financial assets.
Texas Sees Opportunity in Bitcoin
Lawmakers backing the bill say Texas Bitcoin reserves could enhance the state’s financial security. They also believe it will help draw more tech-focused businesses. Senator Charles Schwertner and Representative Giovanni Capriglione argue that Bitcoin offers long-term value.
How Other States Compare
New Hampshire is also exploring a similar reserve model. Arizona and Montana introduced related bills, but both failed to become law. Their governors vetoed them, citing instability in the crypto market. If signed, Texas would take the lead among U.S. states on this front.
Crypto Conversations Are Expanding Nationally
At the federal level, interest in Bitcoin reserves is growing. Senator Cynthia Lummis has proposed the BITCOIN Act. It recommends that the Treasury maintain emergency Bitcoin vaults to protect national interests during crises.
Bitcoin Price Snapshot
As of May 22, 2025, Bitcoin is trading at $110,707. That’s a 3.21% increase from the day before. The high reached $111,547, with a low of $106,178. These movements may add urgency to Texas’s decision on crypto reserves.
Governor’s Signature Is the Final Step
If Governor Abbott signs SB 21, Texas will be the first major state to hold Bitcoin reserves. The move could shift how public funds are managed across the U.S. Other states may follow Texas’s lead if this bill becomes law.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always do your own research before making any financial decisions.
