The Texas Senate has passed Senate Bill 21 (SB 21), allowing the state to allocate public funds to digital assets such as Bitcoin.
The bill, backed by bipartisan support, positions Texas as the first U.S. state to create a Bitcoin reserve. The move comes amid concerns over national economic challenges, including inflation and deficits, prompting lawmakers to view Bitcoin as a viable reserve asset.
Texas Senate Approves Bitcoin Reserve Bill
Texas lawmakers have advanced SB 21, enabling the state to invest public funds into Bitcoin and other digital assets.
The bill, sponsored by Senator Charles Schwertner, establishes the Texas BTC Reserve under the management of the Texas Comptroller. It will hold Bitcoin and other cryptos with a market capitalization of at least $500 billion.
The legislation also provides a mechanism for funding the reserve through state appropriations. Supporters of SB 21 emphasize Bitcoin’s resilience through multiple market cycles.
Texas Lieutenant Governor Dan Patrick reaffirmed his commitment to making the state a leader in digital asset adoption. He stated that Texas aims to position itself at the forefront of the digital economy, aligning with President Donald Trump’s stance on crypto innovation. Patrick adds;
“Some have called Bitcoin “digital gold,” and I believe its limited supply and decentralized nature make it a critical asset for Texas’ future.”
Strategic Bitcoin Reserve Advisory Committee Introduced
To ensure oversight, SB 21 creates the Strategic Bitcoin Reserve Advisory Committee. This body will provide recommendations on the reserve’s management and release a biennial report detailing its holdings. Lawmakers structured the legislation to allow adjustments based on economic conditions and market performance.
Meanwhile, other states have explored similar initiatives, but none have reached the legislative stage of Texas. At least a dozen states have made efforts to pass bills permitting digital asset investments, though several encountered opposition or legislative setbacks.
New Hampshire Advances a Similar Proposal
On Wednesday, New Hampshire lawmakers progressed with House Bill 302, a measure permitting the state to allocate up to 5% of public funds into Bitcoin and precious metals. The bill passed a state house committee by a 16-1 vote, advancing it toward further legislative review.
While Texas has taken the lead, multiple states continue to evaluate digital asset investments. Some proposals have moved forward, while others faced rejection or delays.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
