Texas Advances Bill to Create State-Backed Bitcoin Reserve

Texas is one step closer to becoming the first U.S. state to establish a Bitcoin reserve. On May 7, the Texas House Committee on Government Efficiency approved Senate Bill 21 (SB 21) in a 9–4 vote along party lines.

The bill, which has already cleared the state Senate, now awaits a full floor vote before heading to Governor Greg Abbott’s desk.

If passed, SB 21 would authorize the creation of the “Texas Strategic Bitcoin Reserve,” managed by the state comptroller, currently Glenn Hegar.

Texas Reserve Bill Limits Crypto Investments to Bitcoin-Scale Assets

The reserve would allow Texas to invest in digital assets with a market capitalization exceeding $500 billion over the past 12 months—a category that, as of now, includes only Bitcoin.

The legislation was introduced by Republican Senator Charles Schwertner in January as a Bitcoin-specific proposal.

It was later revised in February to potentially include other qualifying digital assets, although Bitcoin remains the bill’s primary focus.

Julian Fahrer, founder of Bitcoin Laws, noted that the fate of the bill will likely be decided before the state legislature adjourns on June 2.

Governor Abbott has long been an advocate for cryptocurrency, previously declaring his ambition to make Texas the “crypto capital” of the United States. He also accepted Bitcoin campaign donations as far back as 2014.

Texas is not alone in exploring crypto reserves. On the same day the Texas committee advanced SB 21, Arizona Governor Katie Hobbs signed legislation to establish a Bitcoin and Digital Asset Reserve Fund.

The Arizona fund will manage unclaimed crypto assets and is authorized to stake tokens or receive airdrops to grow its holdings—without drawing on taxpayer money.

Just one day earlier, New Hampshire Governor Kelly Ayotte signed House Bill 302, allowing the state treasury to invest in digital assets with significant market caps, including Bitcoin.

Meanwhile, Florida lawmakers went in the opposite direction. On May 3, the state quietly removed two proposed Bitcoin reserve bills from consideration while passing more than 200 other unrelated measures.

If SB 21 passes the Texas House, it would represent a major milestone in the growing trend of U.S. states integrating digital assets into public finance strategies

Public Companies Show Continued Interest in Bitcoin

Public companies continue to show strong interest in Bitcoin, with Michael Saylor’s firm, Strategy, recently announcing it will double its capital raise to $84 billion in order to expand its Bitcoin holdings.

The company filed to sell an additional $21 billion in common shares after using up a prior allocation, and it has also doubled its debt issuance target to $42 billion.

This aggressive move reflects a broader trend among public firms, which increased their collective Bitcoin holdings by 16.1% in the first quarter of the year. The data suggests that despite ongoing price volatility, institutional confidence in Bitcoin as a long-term asset remains high.

In contrast, the U.S. government has shown little interest in accumulating Bitcoin. According to BitMEX co-founder Arthur Hayes, the likelihood of the U.S. building a strategic Bitcoin reserve is low due to its growing national debt and the cultural perceptions surrounding crypto ownership.

The government currently holds nearly 200,000 BTC but is not expected to significantly expand that amount.

Amin Ayan

Amin Ayan is a seasoned crypto journalist with over four years of industry experience. His work has been featured in top publications including Cryptonews, Investing.com, 99Bitcoins, and 24/7 Wall St. With a background in engineering, Amin brings a technical edge to his reporting and enjoys exploring the intersections of blockchain, artificial intelligence, and digital media.