Texas Senate Approves Bitcoin Reserve Bill, Setting Stage for Digital Asset Strategy

The Texas Senate has passed Senate Bill 21 (SB 21), paving the way for the creation of a state-managed Bitcoin Reserve.

Lieutenant Governor Dan Patrick announced the legislation’s approval on March 6, highlighting its bipartisan support and potential to position Texas as a leader in the digital economy.

Sponsored by Senator Charles Schwertner, SB 21 establishes a reserve to hold Bitcoin and other cryptocurrencies under state oversight. The Texas Comptroller will manage the fund, which will only include digital assets with a market capitalization of at least $500 billion.

State-Managed Fund to Hold Bitcoin and Other Cryptocurrencies

The bill also introduces a Strategic Bitcoin Reserve Advisory Committee, tasked with guiding the reserve’s management and providing biennial reports on its status.

Patrick emphasized Bitcoin’s value as a secure and decentralized asset, referring to it as “digital gold” with long-term significance for Texas.

The Lieutenant Governor framed the initiative as a model for other states and reaffirmed his alignment with former President Donald Trump’s stance on digital assets.

“Creating the Texas Bitcoin Reserve is a bold step for other states to follow,” Patrick stated.

The legislation comes amid growing national discussions on cryptocurrency reserves. In January, Trump issued an executive order directing a commission to explore the feasibility of a federal digital asset stockpile.

Federal Moves on Digital Assets Influence Texas Legislation

The order has prompted state lawmakers, including those in Texas, to accelerate their efforts in adopting cryptocurrency policies. Wyoming Senator Cynthia Lummis recently suggested that states may move faster than the federal government in implementing such initiatives.

Despite enthusiasm from state officials, Trump’s broader approach to cryptocurrency reserves has drawn criticism from some industry leaders. Detractors argue that Bitcoin, with its limited supply and decentralized structure, is best suited as a reserve asset, unlike other cryptocurrencies included in the federal study.

However, the White House has yet to clarify the specifics of how the national reserve would be structured or how digital assets would be acquired.

Before becoming law, SB 21 still requires approval from the Texas House and the governor’s signature. If enacted, Texas would become one of the first states to formally integrate Bitcoin into its financial strategy.

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