TL;DR
- The Texas Senate passed the Bitcoin Strategic Reserve Bill (SB-21) with a 25-5 vote, advancing it to the House for further consideration.
- If approved, Texas will establish a state-controlled fund to acquire and manage Bitcoin—as part of its financial reserves—using state funds, investments, donations, and crypto rewards.
- Proponents view Bitcoin as “digital gold” that could solidify Texas’s financial strategy, reinforcing the state’s reputation for crypto-friendly legislation.
The Texas Senate has passed the Bitcoin Strategic Reserve Bill (SB-21) with a decisive 25-5 vote. This bill, which aims to establish a strategic Bitcoin reserve for the state, now moves to the Texas House of Representatives for further deliberation. If approved by the House and signed into law by Governor Greg Abbott, Texas will become the first U.S. state to hold Bitcoin as part of its financial reserves.
MASSIVE BREAKING: Strategic Bitcoin Reserve bill passes the Senate Floor 25-5 in Texas.
This bill is a major priority bill for @LtGovTX. Thank you to @DanPatrick for pushing to make Texas a leader on Bitcoin!
Congrats to leadership from @DrSchwertner for leading the charge. pic.twitter.com/blpgMAb3bc
— Dennis Porter (@Dennis_Porter_) March 6, 2025
Details of the Bill
The bill, introduced by State Senator Charles Schwertner, proposes the creation of the Texas Strategic Bitcoin Reserve. This reserve will be a special fund separate from the state treasury, overseen by the comptroller.
The reserve will be used to acquire, hold, and manage Bitcoin and potentially other digital assets as part of the state’s financial strategy. The bill allows for various sources of funding, including state-allocated funds, investment earnings, private donations, and proceeds from Bitcoin-related rewards such as airdrops and blockchain forks.
Economic Implications
Proponents of the bill argue that establishing a Bitcoin reserve will help Texas shore up its balance sheet with a valuable, scarce asset. Senator Schwertner emphasized that Bitcoin, often referred to as “digital gold,” has become a recognized asset in financial markets.
He argued that states can no longer rely on traditional methods of storing value, such as stacks of dollar bills in safes, and must look toward digital assets to stay ahead in the evolving financial landscape.
Broader Legislative Context
Texas has a history of crypto-friendly legislation, which has paved the way for this bill. In 2021, House Bill 4474 recognized digital assets under the Uniform Commercial Code, and House Bill 1576 established a blockchain working group. These legislative moves have positioned Texas as a leader in the adoption of digital assets and blockchain technology.
Future Prospects
The passage of the Bitcoin Strategic Reserve Bill in the Senate marks a significant step forward for Texas in the realm of digital assets. As the bill moves to the House for approval, all eyes will be on Texas to see if it can successfully establish itself as a leader in Bitcoin adoption at the state level.
