Texas lawmakers have taken a significant step toward Bitcoin adoption, following the House’s approval of Senate Bill 21 on its third reading by a 101–42 vote.
The legislation proposes the establishment of the Texas Strategic Bitcoin Reserve, a state-managed digital asset fund by the Texas Comptroller. As per the bill’s stipulations, the fund will only invest in crypto assets with a minimum market capitalization of $500 billion over the past year.
Currently, Bitcoin is the sole crypto meeting this threshold. With the House and Senate approvals secured, the bill now awaits action from Governor Greg Abbott.
Legislative Progress and Oversight Requirements
The Texas Senate passed the measure on March 6 with a 25–5 vote, paving the way for it to move through the House. The bill mandates strict oversight of the proposed reserve. It requires regular third-party audits, with audit results to be submitted to the state legislature every two years.
The state comptroller will manage the fund directly, ensuring that investments comply with the outlined market cap criteria. If signed into law, Texas will become the second U.S. state to establish such a reserve. New Hampshire was the first, following Governor Kelly Ayotte’s May 6 enactment of House Bill 302.
Texas Mining Activity and Energy Concerns
Bitcoin’s prominence in Texas is notable, as nearly half of all U.S.-based mining occurs within the state. This volume has positioned Texas as the world’s leading hub for Bitcoin mining. However, the legislation has not been universally welcomed.
Some Texas residents have expressed concern over the potential strain on the ERCOT-managed electric grid, especially during high-demand periods. Others have voiced unease over the perceived lack of transparency within the growing crypto sector, contributing to public hesitation.
National Trend and Mixed Reception Elsewhere
The legislative move in Texas comes amid a broader but mixed national trend. According to Bitcoin Laws, 47 strategic Bitcoin reserve bills have been introduced across 26 U.S. states. However, many have not advanced.
On May 6, Florida legislators withdrew two strategic Bitcoin reserve bills from consideration. Likewise, Arizona Governor Katie Hobbs vetoed two similar measures on May 13. Despite this, Texas and New Hampshire stand out as the only states where such proposals have advanced to gubernatorial review or implementation.
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.
