Texas Bitcoin Reserve Bill Passes Second House Vote

Texas lawmakers voted 105 to 23 in favor of a Bitcoin strategic reserve bill, known as SB21, underscoring strong support. The legislation, which would allow the state to invest in Bitcoin, now moves to the third hearing.

If advanced, it will head to Texas Governor Greg Abbott, who can choose to sign the bill, veto it, or take no action, in which case it may still become law.

Texas May Become the Next US State to Establish a Strategic Bitcoin Reserve

As a result of the May 20 Senate vote, Texas is one step closer to becoming one of the first US states to approve a Strategic Bitcoin Reserve. Sharing the news, Lee ₿ratcher, President of the Texas Blockchain Council, congratulated Chairmen Giovanni Capriglione and Charles Schwertner, co-authors of the bill.

The Texas bill was introduced in December 2024, proposing that the state accept taxes, fees, and donations in bitcoin for a minimum of five years. The fund would be invested in the state treasury pool and managed by the Investment Authority of Public Accounts.

Texas, already a leader in Bitcoin mining, may further strengthen its position as a crypto hub through the proposed reserve. The bill highlights the growth potential of digital assets and their possible positive impact on the state's financial resilience.

Earlier this month, New Hampshire became the first state to authorize Bitcoin Reserve, allowing the state to invest up to 5% of its capital into digital assets and precious metals.

Arizona Governor Katie Hobbs, meanwhile, vetoed the Bitcoin reserve bill, stating that public pension funds must be protected from market speculation.

State Bitcoin Reserves and the US Crypto Policy

The US has adopted a crypto-friendly regulatory approach. In March 2025, Donald Trump signed an executive order to establish the Strategic Bitcoin Reserve and Digital Asset Stockpile, funded by government-confiscated cryptocurrencies.

State Bitcoin reserves, in turn, are a new and evolving element within the broader US crypto policy landscape. By allowing states to include Bitcoin in their treasury assets, these reserves aim to diversify public funds and offer potential protection against inflation. Beyond financial strategy, they also reflect growing government acceptance of cryptocurrencies, helping to legitimize digital assets beyond private markets.

At the same time, state Bitcoin reserves raise concerns due to volatile market prices and risk management challenges.