Texas House Passes SB21 to Establish Strategic Bitcoin Reserve

The Texas House of Representatives has passed Senate Bill 21 (SB21) on its third reading to establish a strategic Bitcoin reserve. The bill passed in a 101–42 vote and now awaits the signature of Governor Greg Abbott.

Key Provisions of the Bill

The bill authorizes the state comptroller to create a dedicated fund, separate from the state treasury, for investments in Bitcoin and other cryptocurrencies with a market cap above $500 billion over the past 12 months. Currently, only BTC meets that threshold.

Additional provisions include:

• Cold storage of digital assets 
• Collaboration with qualified custodians and liquidity providers
• Authorization to engage in staking and use derivative instruments

The fund will receive capital from state budget allocations, donations from Texas residents, and investment returns.

Related: Bitcoin Reserve Summit 2025 Heads Online to Tackle National Finance

Although the fund will operate independently of the general state budget, it may be temporarily converted to address the state’s cash management needs. Additionally, it may partner with financial institutions to maintain adequate liquidity.

The bill passed the Texas Senate on March 6 with a 25–5 vote. Introduced by Senator Charles Schwertner, SB21 advanced through committee and multiple hearings before receiving unanimous approval from the Senate Business and Commerce Committee ahead of the final floor vote.

Related: Utah Passes Blockchain Law, Removes Bitcoin Reserve Clause

Support and Opposition

Ahead of the vote, Representative Giovanni Capriglione underscored the bill’s importance for establishing Texas’s leadership in the digital economy.

Pivotal moment in securing Texas’s leadership in the digital age with the passage of our strategic Bitcoin reserve. Now, we embrace a modern asset with traditional properties for future promise,

said Capriglione.

One of the more debated provisions involved the mechanism for private donations. Lawmakers revised a clause that allows Texas residents to contribute cryptocurrency to the fund before the final reading.

If someone decides to give $10 billion [worth of crypto] to the state, they’re creating a market for themselves [and could effectively] manipulate the market using the imprimatur of the state,

warned Senator Nathan Johnson during February hearings, highlighting the risks of large donors potentially influencing state policy.

Next Steps and Broader Legislative Landscape

Following Governor Greg Abbott’s signature, which is expected in the next week or two, officials from the comptroller’s office will outline the purchasing timeline and determine the initial allocation size. The state budget has approved a first tranche of $21 million as seed capital.

According to Bitcoin Laws, lawmakers have introduced 47 Bitcoin reserve bills across 26 U.S. states, yet only two have progressed to executive approval. New Hampshire became the first state to enact such legislation on May 6, 2025. 

Meanwhile, similar initiatives have emerged in Arizona and Florida. In Arizona, the bill passed with Republican support but was vetoed by the state’s Democratic governor. Florida later withdrew its proposal, citing concerns over volatility and regulatory risk.